Fed’s Bullard Says Diversity of Views Leads to Better Policy
Federal Reserve Bank of St. Louis President James Bullard said the U.S. central bank can ensure appropriate monetary policy by encouraging independent research and a wide range of opinions among Fed officials.
“The ability to question and reexamine conventional wisdom leads to better policy,” Bullard said in prepared remarks today in St. Louis. “The Fed’s ability to absorb and tolerate multiple viewpoints helps prevent groupthink and leads to superior monetary policy and, ultimately, to better macroeconomic performance.”
Bullard has said since February that the Fed should trim its plan to buy $600 billion in U.S. Treasuries amid reports of stronger economic growth. He has also expressed concern about the central bank’s commitment to keep interest rates near zero for “an extended period.”
The St. Louis Fed has become “known for challenging conventional wisdom with rigorous analysis and stubborn facts,” Bullard said. “That maverick reputation has endured here ever since.”
Bullard commented in an introduction of Bundesbank President Axel Weber, who is scheduled to speak at the St. Louis Fed.
He didn’t comment on U.S. monetary policy or the economic outlook in his prepared comments.
To contact the reporters on this story: Steve Matthews in Atlanta at smatthews@bloomberg.net
To contact the editor responsible for this story: Christopher Wellisz cwellisz@bloomberg.net
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