Fed's Bullard: 'more uncertainty' and dovish rhetoric

Federal Reserve Bank of St. Louis President James Bullard discussed “The U.S. Economy Three Months into 2018” Wednesday at the Arkansas Bankers Association and Arkansas State Bank Department’s Day with the Commissioner.

In a summary, printed by the Federal Reserve of St Louis, it explains that on growth:

• "Bullard noted that global real GDP growth surprised to the upside during 2017, driving global financial market developments last year. “The effects of the surprise seem to have abated during the first months of 2018 in the face of uncertain first-quarter U.S. real GDP growth along with other factors,” he said.

On inflation,

• "Bullard noted that while it remains low, it is expected to move somewhat higher during 2018. Regarding other macroeconomic developments, he noted that yield curve inversion remains a possibility later this year, and that monetary policy is close to neutral today."
• “Current monetary policy settings are close to neutral, which is appropriate for the current macroeconomic situation,” he said."

Answering reporters questions, Bullard replied the following:

• Trade war disruptive but may yield better arrangements.
• Trade war presents downside risks and uncertainty.
• More uncertainty likely keeping a longer rates lower.
• Don't want to inverted yield curve based on Fed policy.
• Would wait and see on trade before changing outlook.
• Sees 2.5% US GDP growth in 2018, 2.2% in 2019.

About James Bullard

James Bullard is the President of the Federal Reserve Bank of St. Louis. Dr. Bullard took office on April 1, 2008, as the twelfth chief executive of the Eighth District Federal Reserve Bank, at St. Louis. He is currently serving a full term that began March 1, 2011. In 2013, he serves as a voting member of the Federal Open Market Committee.