Bullard Says Fed’s Extended Period Pledge Difficult to Prolong

Federal Reserve Bank of St. Louis President James Bullard said the Fed’s pledge to keep interest rates low for an “extended period” represents the longest duration it can signal for holding down borrowing costs.

“I just don’t think it’s a viable option to say we’re going to go to a super extended period,” of low rates, Bullard said to reporters today in St. Louis. “We’ve already said ‘extended period,’ and it’s harder to promise anything even further out.”