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Bloomberg Talks

Former St. Louis Fed President James Bullard Talks Disinflation, Lower Rates Argument

May 3, 2024
Former St. Louis Fed President James Bullard discusses disinflation and lower rates at the Hoover Institute's Monetary Policy Conference. He explores the challenges of adjusting policy rates amidst disinflation, the need for lower rates in a strong economy, and the complex relationship between markets and the Federal Reserve. Bullard also shares insights on future monetary policy and strategies to achieve a 2% inflation target.
08:11

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Podcast summary created with Snipd AI

Quick takeaways

  • Disinflation trend calls for lower policy rates to maintain inflation targets.
  • Market reactions influenced by Fed's cautious rate changes and market expectations.

Deep dives

Central Bank Inflation Challenge

The episode delves into the challenge faced by the central bank in managing inflation. With a significant disinflation trend observed in 2023, the core inflation rate experienced a notable decline, signaling a need for lower policy rates to align with inflation targets. While the economy has shown strength, the central bank must carefully navigate adjusting policy rates to sustain economic growth and manage inflation expectations.

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