Continued modest growth in the U.S., in the range of 2% for the balance of the year, should be enough keep Federal Reserve policymakers on hold and as data continue to show signs of improvement, St. Louis Federal Reserve Bank President James Bullard said Thursday.
Mr. Bullard, in an interview on CNBC, played down a belief by some in the marketplace that minutes released Wednesday from the Fed suggest the central bank is inclined to act to stimulate the economy. Those minutes, said Mr. Bullard, are “a bit stale,” and that he doesn’t believe U.S. data now warrant a “gigantic” policy response by the Fed.
The probability of further stimulus from the Fed is “not as high” as expectations seen this summer in the financial markets, he said. Still, he said he might support a more modest response if data turn soft, and that the central bank has that option on the table....MORE
Thursday, August 23, 2012
St. Louis Fed Prez: "Modest Growth Would Keep Fed on Hold"
From Real Time Economics: