Sat, Feb 04, 2023 @ 12:17 GMT
HomeLive CommentsFed Bullard: Policy rate getting closer to sufficiently restrictive zone

Fed Bullard: Policy rate getting closer to sufficiently restrictive zone

St. Louis Fed President James Bullard said yesterday that FOMC aggressive actions in 2022 and planned rate hike in 2023 has “returned inflation expectations to a level consistent with the Fed’s 2% inflation target.”

“During 2023, actual inflation will likely follow inflation expectations to a lower level as the real economy normalizes,” he said.

“The policy rate is not yet in a zone that may be considered sufficiently restrictive, but it is getting closer,” he added.

Regarding the economy, Bullard noted, “The probability of a soft landing has increased compared to where it was in the fall of 2022, where it was looking more questionable… And the reason I think that the prospects for a soft landing have increased is that the labor market has not weakened the way many had predicted” and growth levels rebounded from weakness”.

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