Bloomberg Talks Former St. Louis Fed President Jim Bullard Talks PCE Data, Personal Spending
Mar 28, 2025
Former St. Louis Fed President Jim Bullard dives into the implications of rising core PCE price indices. He analyzes how stronger personal spending reflects on the economy. The discussion unfolds around the Federal Reserve's strategies for managing inflation expectations and interest rates. Insights into the stable labor market's impact on inflation also emerge, alongside a lighthearted nod to a local basketball team’s game. It's a blend of serious economic analysis and a touch of sports excitement!
AI Snips
Chapters
Transcript
Episode notes
Inflation Expectations vs. Fed Target
- Jim Bullard disagrees with the market's inflation expectations.
- He believes the Fed needs to maintain higher rates to achieve its 2% inflation target.
Inflation and Monetary Policy
- Bullard argues that inflation is primarily controlled by monetary policy, not tariffs.
- Policymakers must adjust appropriately to achieve inflation targets.
Rate Hike Probability
- Bullard acknowledges a slight increase in the probability of a rate hike.
- He points out the lack of progress in reducing core PCE inflation.