Fed’s Bullard Says He Doesn’t See Economic Recovery Faltering

Discussion in 'Economics' started by ASusilovic, Jul 10, 2009.

  1. July 9 (Bloomberg) -- Federal Reserve Bank of St. Louis President James Bullard said he doesn’t expect a U.S. economic recovery to falter or central bankers to make errors in their policy on inflation.

    “We are going to have just the right policy to get the right inflation rate,” Bullard said today in a Bloomberg Television interview. “I do not buy into the stories about the Fed making a mistake one way or the other going forward.”

    Fed officials are seeking to end the deepest recession in five decades, and are seeing signs that the pace of economic contraction is slowing. The central bank indicated last month it’s not ready to raise interest rates, and left the door open to increasing purchases of Treasuries and mortgage debt should the economy falter more.

    “I do not think the recovery is faltering,” said Bullard, 48, who took over as St. Louis Fed president last year and doesn’t vote on interest rates until 2010. “If you look at the projections that were made in December of last year, we’re right on track.”