Bloomberg Talks Former St. Louis Fed President Jim Bullard Talks Fed Rates
Aug 13, 2025
Jim Bullard, Former President of the St. Louis Fed and Dean at Purdue University, shares his insights on the future of Fed rates as he anticipates the September decision. He weighs the potential for a rate cut amid persistent inflation and discusses the qualities needed in the next Fed chair. Bullard emphasizes the importance of Fed independence while addressing proposed reforms and the necessity for diverse ideas in economic research. He also highlights the impact of market expectations and the significance of high-quality economic data.
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Gradual Rate Cuts Toward Neutral
- Start cutting rates gradually toward neutral rather than panicking with a large immediate cut.
- Aim for about 100 basis points total into 2026 while monitoring inflation data closely.
Watch Inflation Confirmation
- Keep watching inflation confirmation before dialing deeper into cuts to avoid being blindsided.
- High-frequency inflation surprises could derail growth plans if policymakers move too quickly.
Selection Process Still Under Construction
- The Fed selection process is still being designed and discussions have been preliminary.
- Bullard says he's willing to participate and believes the candidate list is credible and capable.