President and CEO of the St. Louis Federal Reserve Bank discusses economy and inflation during visit to MU
James Bullard, president and CEO of the Federal Reserve Bank St. Louis, visited the University of Missouri last week to discuss the economy, monetary policy and the Federal Reserve's response to inflation.
In his presentation “Is the Fed behind the Curve? Two Interpretations," Bullard said that U.S. inflation is exceptionally high and is comparable to inflation in 1974 and 1983. He shared that the Taylor-type monetary policy rules recommend substantial increases in the policy rate and that more information will be known after the Federal Reserve meets in May.
“However, all is not lost. Modern central banks are more credible than their 1970s counterparts and use forward guidance,” he said. “Credible forward guidance means market interest rates have increased substantially in advance of tangible Fed action. This provides another definition of ‘behind the curve,’ and the Fed is not as far behind based on this definition.”
This presentation was made possible through a partnership between the Trulaske College of Business and campus parnters. Breakfast was provided to attendees, and the presentation was followed by a Q&A session.