June 12, 2024

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US inflation is higher than the central bank's target, says St. Louis Bullard

US inflation is higher than the central bank’s target, says St. Louis Bullard

St. Louis Federal Reserve Chairman James Bullard argued this Wednesday that the real economy in the United States has “fully recovered” from the shock of the epidemic and that inflation is “exceeding the federal target.” In this context, the President considered that the current monetary policy “puts upward pressure on inflation”, which requires a “quick withdrawal from the shelter”.

Bullard Greater St. Louis, Inc. Speaking at the event, he noted that in his speech, there were inverted risks to US development.

With the right to vote on monetary policy decisions this year, he said the war between Russia and Ukraine should be “carefully monitored” but would have a greater impact on Europe than on the United States.

The head of the St. Louis Fed predicts that energy markets will be affected by the conflict “for the short and medium term.” On the other hand, the United States could produce more in this area, he pointed out.

Speaking of the epidemic, Bullard said the wave strength of the Omigron variant of the Covit-19 seems to be losing ground, indicating a greater economic reopening in the second and third quarters of 2022. As for inflation, he added. This has a more negative impact on those with “low and moderate” incomes.

He said the central bank should be “more aggressive” in its monetary tightness if inflation does not fall or is lower than planned.

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