Appearing on BloombergTV eary Monday, the US Federal Reserve’s James Bullard, head of the St. Louis Federal Reserve and well-known policy dove, outlines his reasoning for being far less bullish on US inflation.
Key highlights
Bullard doesn’t see much upwards pressure on inflation in the US domestic economy, noting that you can’t take as much of a signal from low unemployment rates as you could have in the past, while Bullard is satisfied with the NAFTA announcement last week.
Bullard holds the view that rates are very close to neutral already, and there’s no need to keep going much higher with Fed rate hikes looking forward.
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