Fed's Bullard: It's a 'denial of reality' to think inflation will return to old normal

Author: Adam Button | Category: Central Banks

Bullard throwing down the gauntlet

  • "Denial of reality" to envision interest rates will soon return to norms of 1990s or early 2000s
  • Fed should defend inflation target or risk losing credibility
  • Raising rates risks policy mistake
  • Open to possibility that spread of technology is depressing prices globally in ways the Fed doesn't understand

These are inflammatory comments but it's par for the course from Bullard.