Federal Reserve Bank of St. Louis President James Bullard said the Fed’s policy committee will be in no hurry to slow its asset purchases this year with inflation below its target.
“It is full steam ahead right now,” Bullard said on Bloomberg Radio’s “Hays Advantage” with Kathleen Hays. ’’I think that is exactly what the committee is doing.’’
The St. Louis Fed chief, who votes on monetary policy this year, was one of the first Fed officials to urge slowing the pace of bond purchases in 2013 in response to economic reports, a position echoed by Chairman Ben S. Bernanke last month.
“I don’t think we have to be in any hurry” with inflation below the Fed’s 2 percent target, Bullard said. “Actual inflation has been running below target. The committee has more comfort in a situation in which inflation is low.”
The U.S. economy is likely to grow around 3 percent this year and first-quarter growth estimates have been raised in response to better-than-expected data, Bullard said.
“Things are pretty good right now for the U.S. economy,” he said. ’’The surprise has been to the upside.’’
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