US central bank should wait and see how economy plays out, Fed's Bullard says
By Alexander Bueso
Date: Friday 23 Jun 2017
(ShareCast News) - The president of the Federal Reserve bank of St.Louis joined those rate-setters who preferred to defer the next interest rate hike.
In a speech delivered in Nashville, James Bullard said: "many future developments could impact policy path, but the Fed does not need to preempt any of them."
With the US economy firmly in a "low growth, low inflation and low interest rate regime" there was no reason to tighten policy, he went on to explain.
"Recent inflation data have surprised to the downside and call into question the idea that U.S. inflation is reliably returning toward target," he added.
"The FOMC can wait and see how key macroeconomic developments play out in the quarters ahead."
Bullard also countered those market observers who believed one of the US central bank's main aims was to cool financial markets.
"It is far from clear that a goal of monetary policy is to cause a deterioration in these aspects of financial markets."
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