St. Louis Fed’s Bullard doubts zero lower bound
President still in favour of ‘lower-than-normal’ interest rates
The low inflation rate in the US does not justify staying at the zero lower bound, according to Federal Reserve Bank of St. Louis president, James Bullard.
Bullard told an audience at the St. Louis Regional Chamber on that although inflation was below the Fed's 2% target – annual CPI inflation held steady at 1.7% in September – it was not enough to justify keeping the Federal funds rate target at 0–0.25%.
"While a low inflation rate may suggest a somewhat lower-than-normal policy rate, that
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