Bullard Says Fed Could Ease Further If U.S. Economy Weakens

St. Louis Federal Reserve President James Bullard said the Fed is prepared to ease policy should the U.S. economy weaken, while keeping an eye on inflation risks.

“The Fed has potent tools at its disposal and is not now, or ever, out of ammunition,” Bullard said today in a speech in San Diego. “Should further weakness develop, monetary policy will need to respond appropriately,” he said, adding that “sluggish growth” leaves the economy vulnerable to “shocks.”