Bullard: Asset Price Bubbles May Become A “Big Concern”

James Bullard

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.

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

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