Bullard Discusses Monetary Policy, Yield Curve, Inflation on CNN

April 18, 2018

St. Louis Fed President James Bullard shared his views on the Fed’s policy rate, the possibility of yield curve inversion, unemployment, inflation, trade and other topics. He spoke during an interview on CNN International’s Quest Express.

He said during the first segment that, in his view, the Federal Open Market Committee should keep the policy rate flat at least over the forecast horizon. He also discussed his concern about the flattening yield curve. “If the Committee pushes ahead here with rate increases and longer rates don’t cooperate, we could have an inverted yield curve within six months here,” he said, adding, “I think this is an issue that very much should be debated in monetary policy circles.”

Watch part 1 of the interview.

During the second segment, he noted that he expects the unemployment rate to fall below 4 percent, but he doesn’t expect that to translate into significantly higher inflation. “I think we can get good labor markets without really increasing inflation very much,” he said.

Watch part 2 of the interview.