In an interview with Bloomberg Radio’s Kathleen Hayes and Vonnie Quinn today, St. Louis Fed President James Bullard said Inflation is about to head higher, expects unemployment falling to about 6% late in 2014 and asset price bubbles may become a “big concern” – but not like in pre-crisis housing.

James Bullard

Highlights from James Bullard’s podcast

Bullard also said on “The Hayes Advantage”:

  • First QE Programs aimed at spurring growth
  • Fed doesn’t vote on monetary policy this year
  • He supported March 19th statement by FOMC
  • Numerical thresholds worked ‘very well’
  • Fed ‘closer to normal monetary policy’
  • ‘Inflation has surprised me to the low side’
  • Inflation has stabilized at a lower level
  • Inflation should speed up toward 2% Fed Target
  • Global headwinds may have restrained inflation
  • Expects first rate rise in 1st quarter of next year
  • Unemployment fell faster than Fed expected
  • Fed has better systems today for ‘flagging’ bubbles’
  • QE tapering has ‘Gone quite well’ for FOMC; ‘Smooth process’
  • ‘Markers very sensitive’ to pace of QE buying
  • FOMC would be reluctant to alter QE Taper pace
  • Sees a good year in 2014 for U.S. Economy; Bullish on 2014
  • ‘Growth inhibitors’ are dissipating in U.S.
  • Expects 3% economic growth for this year.
  • Predicts Fed funds rate in 2016 at 4% or 4.25%
  • Says inflation ‘poised to head back up’
  • ‘Important to defend inflation from ‘low side’
  • Inflation expectations are stable
  • ‘Critical for Fed to have inflation target
  • Expects continued growth in China
  • Slowing inflation would pressure fed to slow tapering

To listen to “The Hays Advantage” Podcast with St. Louis Fed President James Bullard: www.bloomberg.com