St. Louis Fed's president has called for more aggressive measures to combat inflation and reduce the size of the Fed’s balance sheet. ratehikes
“The burden of excessive inflation is particularly heavy for people with modest incomes and wealth and for those with limited ability to adjust to a rising cost of living,” he stressed.St. Louis Federal Reserve Bank President James Bullard issued a statement Friday regarding his dissenting vote at last week’s Federal Open Market Committee meeting.to “raise the target range for the federal funds rate by 25 basis points to 0.25% – 0.
Bullard is an economist who has been the president of the Federal Reserve Bank of St. Louis since 2008. He reiterated that in his judgment, “a 50-basis-point upward adjustment to the policy rate would have been a better decision for this meeting.” Noting that “Headline PCE inflation measured from one year earlier is currently 6.1%, and the associated core PCE inflation rate, which ignores food and energy components, stands at 5.2%,” the St. Louis Fed president stated: “The committee is missing its target by 410 basis points on the headline measure and 320 basis points on the core measure.” He opined:
“The committee’s policy rate is currently far too low to prudently manage the U.S. macroeconomic situation … U.S. monetary policy has been unwittingly easing further because inflation has risen sharply while the policy rate has remained very low, pushing short-term real interest rates lower,” Bullard detailed, emphasizing:
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