Think St Louis Fed President James Bullard would shy away from the media after retiring from the St Louis Fed? Not a chance. No one loves to talk more than Bullard and he resurfaced today just ahead of Jackson Hole.
Some highlights of his interview with Bloomberg:
- “I think the probabilities are that we are in a new regime that will be a higher interest-rate regime”
- “Inflation is above target today. Core inflation is likely to be sticky and come down rather slowly.”
- “The biggest question now is the re-acceleration in the economy” (he cited GDPNow)
- “This reacceleration could put upward pressure on inflation, stem the disinflation that we’re seeing and instead delay plans for the Fed to change policy.”
- “There is some talk about base effects fading and going in the other way in the second half of the year so we’ll see how that goes”
I don’t think there’s much here to digest as Bullard was saying the same things before he left his post.