James Bullard, Speech: Removing Monetary Policy Accommodation

Bullard noted that U.S. inflation “has surprised substantially to the upside” in an environment where measures of real economic activity and labor market performance are, despite geopolitical risks, expected to remain robust. There has been an initial, implicit U.S. monetary policy response to the ongoing inflation shock, he said, and this response is already reflected in financial market pricing. He reiterated that the FOMC must now follow through in terms of policy rate increases and balance sheet runoff. “Forthright and transparent actions designed to keep inflation under control will give the U.S. economy the best possible chance at a long and durable expansion,” Bullard concluded.