James Bullard, Interview: CNBC

“We’ve been surprised to the upside on inflation. This is a lot of inflation in the US economy. 7.5% on the headline CPI. These are numbers that Alan Greenspan never saw, that haven’t occurred in 40 years. So our credibility is on the line here. And we do have to react to data. However, I think we can do it in a way that’s organized and not disruptive to markets. We’re only removing accommodation. So it’s still an accommodative policy as we go through these initial rate hikes. They’re rather cheap actually, given that unemployment’s down 4% and the economy’s expected to grow, let’s say 3.5% to 4% this year. So I think my position is a good one. And I’ll try to convince my colleagues that it’s a good one.”