Fed’s Bullard Says US Economy Close to Normal

The U.S. macroeconomy is much closer to a normal state than it has been in five years, a Federal Reserve official said on Monday, adding that weak labor markets and low inflation are what is keeping accommodative monetary policy in place.

“The FOMC (Federal Open Market Committee) is much closer to its macroeconomic goals than it has been in the past five years,” said James Bullard, president of the St. Louis Federal Reserve Bank, speaking at a conference in Palm Beach, Florida.

“The committee now faces a classic challenge concerning the appropriate pace of monetary policy normalization,” he said.

Labor markets do not seem to be fully recovered, Bullard said, and inflation is low though moving back to target.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza