August 28, 2020
St. Louis Fed President James Bullard discussed the Federal Open Market Committee’s updated monetary policy framework and various aspects of the U.S. economy in an appearance on CNBC.
Regarding the FOMC’s recent change to a flexible form of average inflation targeting, Bullard said the idea is to cement inflation expectations by hitting 2% inflation on average over time. In addition, he discussed his outlook for current and future economic growth; the monetary policy response to the COVID-19 pandemic; small businesses’ ability to adapt to changes brought on by COVID-19; and the need to be aware of potential asset bubbles.
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