Bullard says Fed risks credibility by moving too slowly to quell high inflation
St Louis Federal Reserve President James Bullard doesn’t think the U.S. central bank is attacking high inflation with enough urgency — risking both its credibility and the U.S. economic recovery.
The president of the St. Louis Federal Reserve was the lone “no” vote when the central bank raised a key U.S. interest rate on Wednesday for the first time in four years. “The [Fed] will have to move quickly to address this situation or risk losing credibility on its inflation target,” Bullard said in a statement on Friday morning.
These increases are expected to dampen consumer spending and business investment, slow a rapidly growing economy — and help bring down inflation. “The burden of excessive inflation is particularly heavy for people with modest incomes and wealth and for those with limited ability to adjust to a rising cost of living.”
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