Bullard Speaks with Bloomberg about Monetary Policy, the Yield Curve

August 24, 2018

St. Louis Fed President James Bullard said he thinks the Fed’s policy rate is at or very close to neutral right now and there’s no need to risk inverting the yield curve with higher rates. “There is no reason to challenge the yield curve at this time,” he said in an interview with Bloomberg TV. “In other circumstances, if inflation was higher and heading higher, then I might say ‘Well, we’re taking some recession risk, but I’m willing to trade that off because it looks like inflation’s getting out of control,’” he said. “We’re not in that situation today.”

He also shared his views about the slope of the Phillips curve, tariffs, and the link between innovation and the size of companies today.

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