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Fed's Bullard Says Tax Overhaul May Light Fire Under Investment

  • St. Louis Fed chief says that could require higher rates
  • Bullard: ‘I can afford to wait and see if that really happens’
Bloomberg business news
"We’ve made no progress on the inflation target," St. Louis Fed President Bullard says.(Source: Bloomberg)

Federal Reserve Bank of St. Louis President James Bullard said President Donald Trump’s $1.5 trillion tax overhaul may spur investment and U.S. economic growth, though policy makers can “wait and see” if that warrants higher interest rates because inflation is low.

“There is some possibility this could light a fire under investment and really drive growth higher,” Bullard, a policy dove who has argued against raising rates, said in a Bloomberg TV interview with Michael McKee on Friday. “If that happens I would certainly take note of that and adjust policy appropriately.”