James Bullard, president of the Fed in St louis, said:
- US policy is possibly to be neutral, so the Fed should be cautious.
- Inflation expectations remain somewhat low.
- It is a question of how far the US Federal Reserve will go, while the European Central and Japanese central banks are still on hold.
- The Fed should be cautious with further rate hikes.
- Fed should have the tools to deal with the next recession if it happens.
- It is hard for US interest rates to be too far away from the global situation, given that the Bank of Japan and the ECB continue to pursue easing policy.
- We do not want to prejudge what Fed will do at the June meeting.
- Inflation target at 2% is the international standard.
- Bank of Japan does not need to change the inflation target from 2% as it is the standard.
- Oil has only a temporary effect on inflation.
- The inverted yield curve helps to predict the recession in the US.
- should not go further in raising interest rates unless the data comes in an upside.
