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