Fed’s Bullard expects future of inflation to be “sticky”

James Bullard, president of the St. Louis Federal Reserve, stated on Thursday that he believes future inflation will be sticky. He believes that present interest rates are at the low end of a properly restrictive range in terms of monetary policy. To bring inflation back on track, he said that one had “keep at it.”


In a low volume session on Thursday, the US Dollar Index is trading unchanged around 101.85 in anticipation of the Easter weekend. Once the bell rang for Wall Street’s opening, the dollar modestly lost its gains.

Bullard warned that one of the biggest risks for the US economy is that the current inflation becomes entrenched.

Amid ongoing developments in the bond market, Bullard explained that some yield curve inversion reflects the inflation outlook. According to him, it is a great time to reassess how the deposit insurance is designed.