Fed's James Bullard: 'Restrictive' US policy likely curbing inflation
Updated : February 08, 2019 08:18 AM IST
James Bullard, in remarks to reporters after an appearance at St. Cloud State University in Minnesota, said that on an inflation-adjusted basis he now views the current federal funds rate as “a little bit restrictive.”
Bullard said he expects the Fed to miss that inflation target again in 2019, a now-perennial problem that he feels has nicked the central bank’s credibility.
The proper path of interest rates and the correct assessment of policy has been a topic of intense debate in recent months as the Fed aimed to raise rates to a “neutral” level after a decade of low rates meant to boost the economy.