James Bullard, Interview: Financial Times (excerpts)
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“I do expect disinflation, but it’s been slower than I would have liked, and it may warrant taking out some insurance by raising rates somewhat more to make sure that we really do get inflation under control.”
“Our main risk is that inflation doesn’t go down or even turns around and goes higher, as it did in the 1970s.”
“It would probably be better and more prudent to be in the middle of the zone.”
Graph below is from Bullard’s 5/12/23 speech. The sufficiently restrictive zone is between 4.90% and 6.40%. The Middle of the zone would be 5.75%.
