Bloomberg Talks Former St. Louis Fed President Jim Bullard Talks Basis Points
Aug 22, 2025
Jim Bullard, former President of the Federal Reserve Bank of St. Louis, shares insights on the need for significant interest-rate cuts this year. He examines the dual economy, contrasting the booming tech sector with struggling industries. Bullard discusses the tension between political pressures and effective monetary policy, and the need for the Fed to maintain credibility amid rising inflation. He also addresses current labor market challenges and the complexities of tariffs, offering an optimistic perspective on future investments.
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Gradual Cuts With Data Watching
- Jim Bullard expects the Fed to cut about 100 basis points going into 2026 while moving slowly to watch data.
- He praised Powell's Jackson Hole speech as solidifying a September 25bp move and thoughtful framework remarks.
Distribution Limits Of Interest Rates
- Bullard says income and wealth distribution is now a more salient Fed topic but tools are blunt.
- He notes monetary policy affects everyone, complicating targeted distributional aims.
Teach AI Across Higher Education
- Embrace AI in education and require students to learn it, Bullard says he added an AI requirement at Daniels School.
- He recommends expanding AI instruction across universities to speed productive diffusion.