Former St Louis Fed President Bullard says we are in a higher-rate regime

Think St Louis Fed President James Bullard would shy away from the media after retiring from the St Louis Fed? Not a chance. No one loves to talk more than Bullard and he resurfaced today just ahead of Jackson Hole.

Some highlights of his interview with Bloomberg:

  • “I think the probabilities are that we are in a new regime that will be a higher interest-rate regime”
  • “Inflation is above target today. Core inflation is likely to be sticky and come down rather slowly.”
  • “The biggest question now is the re-acceleration in the economy” (he cited GDPNow)
  • “This reacceleration could put upward pressure on inflation, stem the disinflation that we’re seeing and instead delay plans for the Fed to change policy.”
  • “There is some talk about base effects fading and going in the other way in the second half of the year so we’ll see how that goes”

I don’t think there’s much here to digest as Bullard was saying the same things before he left his post.

This article was written by Adam Button at Source