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12/21/22, 5:38 PM A Cautionary Note on U.S. Monetary Policy Normalization | James Bullard | St. Louis Fed Home > Latest from President Bullard > Speeches, Presentations and Commentary From the President A Cautionary Note on U.S. Monetary Policy Normalization May 29, 2018 Presentation (pdf) | Press Release Speaking in Tokyo, St. Louis Fed President James Bullard discussed three reasons why caution may be justified in deciding whether to raise the U.S. policy rate (the fed funds rate target) further in the near term. First, market-based inflation expectations in the U.S. remain somewhat low. Second, the current level of the policy rate appears to be neutral, meaning it is putting neither upward nor downward pressure on inflation. Third, the U.S. nominal yield curve could invert later this year or in 2019, which would be a bearish signal for U.S. macroeconomic prospects, he said. FOLLOW US SIGN UP FOR EMAIL ALERTS Receive updates in your inbox as soon as new content is published on our website SIGN UP QUICK LINKS About Us Legal Information https://www.stlouisfed.org/from-the-president/speeches-and-presentations/2018/a-cautionary-note 1/2 12/21/22, 5:38 PM A Cautionary Note on U.S. Monetary Policy Normalization | James Bullard | St. Louis Fed Contact Us Privacy Policy Careers Doing Business with the Fed Events Federal Reserve Services Visiting the St. Louis Fed Federal Banking Regulations https://www.stlouisfed.org/from-the-president/speeches-and-presentations/2018/a-cautionary-note 2/2