In an interview with German daily Handelsblatt, James Bullard, president of the St. Louis Federal Reserve, said that he was worried about low core inflation and added that he would get more aggressive in pushing the FOMC to lower the policy rate if the softness in inflation were to become persistent.
“On the inflation part of our mandate our preferred measure of inflation which is core PCE inflation is only running at 1.6 percent year-over-year,” Bullard explained. “This is a concern to me. I do think that this number plus relatively low inflation expectations warrant attention from the FOMC.”
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