All signs are pointing to a rise in U.S. inflation, St. Louis Federal Reserve President James Bullard said on Wednesday, but though the economy may boom later this year, it's too early to say when the Fed could take any steps to pull back on its super-easy policy.
All signs are pointing to a rise in U.S. inflation, St. Louis Federal Reserve President James Bullard said on Wednesday, but though the economy may boom later this year, it s too early to say when the Fed could take any steps to pull back on its super-easy policy.
Jan 7, 2021 18:57 GMTFXStreet News
St. Louis Federal Reserve President James Bullard said on Thursday that he expects to see an “investment boom” fueled by low yields and expectations the coronavirus pandemic is going to end, as reported by Reuters.
“Any further fiscal program should be disciplined to go to households that need it rather than piling on,” Bullard added and reiterated that negative rates are not a good option for the US.
“Single-party control of the White House and Congress is not a blank check, a split in the Senate will still make some measures difficult,” Bullard further argued.
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By Reuters Staff
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FILE PHOTO: St. Louis Federal Reserve Bank President James Bullard speaks at a public lecture in Singapore October 8, 2018. REUTERS/Edgar Su/File Photo
WASHINGTON (Reuters) - The combination of easy monetary policy, ample government spending, and a possible economic surge once the pandemic lifts could spark faster-than-expected inflation, St. Louis Federal Reserve President James Bullard said on Thursday.
The Fed in recent years has struggled to lift the pace of price appreciation to its 2% target, but now “you have very powerful fiscal policy in place and perhaps more to come, you have a Fed that has backed away from a preemptive strategy.and wants to temporarily have inflation above target, and you have the economy poised to boom at the end of the pandemic,” Bullard said. “Those things all seem to suggest that the stage is set for higher inflation.”