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Fed’s Bullard Sees Medium-Term Boost From Trump Spending

  • Policy maker says his near-term policy outlook hasn’t changed
  • Rate increase in December still Bullard’s favored option
James Bullard, president of the Federal Reserve Bank of St. Louis.

James Bullard, president of the Federal Reserve Bank of St. Louis.

Photographer: Sam Hodgson/Bloomberg
Updated on

Federal Reserve Bank of St. Louis President James Bullard said there’s a chance the U.S. economy could get a medium-term boost if President-elect Donald Trump boosts infrastructure spending and reforms taxes.

While Bullard offered that possibility, he said it’s still too soon to say how the economy may be affected by the election and he hasn’t changed his near-term outlook for growth or monetary policy. A “single policy-rate increase, possibly in December, may be sufficient to move monetary policy to a neutral setting,” he said, according to slides released by his office for a speech in London Wednesday.