Fed’s Bullard Warns Against Rate Hikes
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The Fed should slow its pace of policy normalization to help re-align price expectations around 2 percent and maintain the credibility of its inflation target, Federal Reserve Bank of St. Louis President James Bullard said Tuesday in Tokyo.
“Inflation expectations in the U.S. remain somewhat low, suggesting that further normalization may not be necessary to keep inflation near target,” Bullard said in prepared remarks for a seminar. “A reasonable policy going forward may be to temper the pace of normalization.”