Bloomberg Talks Former St. Louis Fed President Jim Bullard Talks Interest Rates, Fed Chair
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Sep 19, 2025 James Bullard, former president of the Federal Reserve Bank of St. Louis, shares his insights on interest rates and monetary policy. He defends the Fed's decision to avoid a significant rate cut, emphasizing the importance of the 2% inflation target. Bullard also discusses his views on the neutral rate and the need for risk management as growth slows. Additionally, he proposes replacing the current dot plot with a more informative forecast report, highlighting his unique take on Fed communication strategies.
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Meeting With The White House
- James Bullard described his meeting with the White House as a broad, transparent conversation with many candidates on the list.
- He emphasized he knows most people being considered and can't disclose meeting specifics.
Pause Preserves Optionality
- Bullard supported the Fed's decision to pause larger cuts and called it a good compromise providing optionality.
- He noted weak nonfarm payroll revisions made the committee more cautious and data-dependent.
Neutral Rate Still Low
- Bullard estimates the neutral rate is fairly low, perhaps around 3.25%.
- He argued policy at or above 4% still exerts meaningful restrictive pressure and allows room to ease.