Federal Reserve Bank of St. Louis President James Bullard, who has backed continued bond purchases by the Fed, said it is important for the central bank to defend its 2 percent inflation target to ensure its credibility as price gains moderate.
“I have been concerned about low inflation,” Bullard, who votes on monetary policy this year, said in a speech today in Paducah, Kentucky. “There hasn’t been much indication so far it is moving back toward target.”
