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(CEP News) - Monetary policy in the U.S. does not need to be changed right now - this point was driven home by Federal Reserve Bank of St. Louis President James Bullard in an interview with Reuters on Monday.
He said cutting interest rates is not the right way to solve a financial crisis, and that during times of market volatility, it doesn't accomplish anything. He said current monetary policy matches rates from the 1970s. Furthermore, he said he's worried that with all this rate cut talk, inflation concerns are being put "on the back burner." He said inflation is at the most dangerous levels seen since the 1970s and that a slowing economy and lower commodity prices would help ease inflation levels. Bullard said he is more optimistic than some of his counterparts at the Federal Reserve. By Megan Ainscow,
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