Former Federal Reserve Bank of St. Louis President James Bullard spoke Friday in Marrakech, Morocco, at a Euro50 seminar on the sidelines of the annual meetings of the International Monetary Fund and World Bank.
- “The risk that’s underpriced in markets is that disinflation stalls out or stops altogether and core PCE inflation starts to go up again,”
“If that happens the committee will have to contemplate going to 6% or 6.5%”
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Now that Bullard is no longer a responsible policymaker, he has a new academic job, he is letting rip on the scary prognostications!
Having said that, 6.5% is not out of the question if needed, its Fed Funds history shows us numerous visits above there.