Bullard Doesn’t See Brexit Chance Affecting Fed Policy Makers

How Reliable Are Brexit Forecasts?
  • St. Louis Fed chief sees lower possibility of U.K. leaving EU
  • Bullard answers audience questions after talk in Beijing

Federal Reserve Bank of St. Louis President James Bullard said he doesn’t see the U.K.’s vote on European Union membership influencing the U.S. central bank policy makers’ meeting that will be held the week before the referendum.

He said that even if the U.K. decides to leave, “the next day nothing happens” and the country will enter into departure negotiations bound to go “very slowly.”

“I also see the probability of an exit vote as having fallen somewhat recently,” Bullard told an audience at a monetary and financial institution forum in Beijing on Monday. “Because of these factors I feel it won’t influence the FOMC’s decision.”

The U.S. Federal Open Market Committee meets on June 14-15, with rampant speculation over the possibility of an increase in U.S. interest rates. The U.K. holds its referendum on possibly leaving the EU, a process known as Brexit, on June 23.

Bullard is a voting member of the policy-setting FOMC this year.

— With assistance by Kevin Hamlin

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