Fedchefen in St. Louis, James Bullard, is opposed to further interest rate hikes as the economy continues to expand at a pace of around 2 percent, and inflation to return quickly towards 2 per cent.
This he said in a speech on Wednesday night, according to Bloomberg News.
“The current level of policyräntan is appropriate given the current macroeconomic data… The us inflation has surprised on the downside in recent months, and the surprise will probably not reverse in 2017,” said James Bullard.
He said that he ”questions the idea that the inflation reliable returns towards the goal”.
”Low arbetslöshetsutfall is probably not an indicator of meaningful higher inflation during the forecast period… Even if the U.S. unemployment falls substantially further, the impact will be on U.S. inflation is likely to be very small,” said James Bullard.
He further said that the current data suggest that GDP growth continued to be is consistent with the recent lågtillväxtregim.
James Bullard said that he suspects that the courses on the stock market is high, even if he pointed out that a ”bubble is a strong word”.
”The whole market is up. Much of it can be linked to a few shares… technology stocks fell, with exceptional values”.
James Bullard further noted: ”I am the most duvaktige member of the FOMC,” but added that ”I used to worry about inflationary pressures”.
”We don’t need to act proactively to try to get ahead of future inflation,” he said.
Tradingportalen/Agency Directly.
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