- Says Fed much closer to its macroeconomic goals than at any time in the last 5 years, but monetary policy stance remains far from normal
- FOMC is closer to target today than it has been most of the time since 1960
- Labour markets do not seem fully recovered meaning monetary policy still far from normal
- FOMC now faces a classic challenge on the appropriate pace of normalisation
St Louis Fed head James Bullard at the Tennessee bankers assoc annual meeting.
Considering how they’ve missed most of their “goals” and “targets” for the last 5 years, the fact they may be closer is probably more by luck than design. Central banks trying to steer an economy is like trying to steer an oil tanker with a teaspoon.
