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12/21/22, 5:38 PM How to Extend the U.S. Expansion: A Suggestion | James Bullard | St. Louis Fed Home > Latest from President Bullard > Speeches, Presentations and Commentary From the President How to Extend the U.S. Expansion: A Suggestion September 5, 2018 Presentation (pdf) | Press Release In New York, St. Louis Fed President James Bullard laid out a possible strategy for extending the U.S. economic expansion. The strategy relies on placing more weight on financial market signals, such as the slope of the yield curve and market-based inflation expectations, than is customary. He noted that many current approaches to monetary policy strategy continue to overemphasize the now-defunct empirics of the Phillips curve, whose inflation-unemployment relationship has largely broken down over the past two decades. “Handled properly, current financial market information can provide the basis for a better forward-looking monetary policy strategy,” he said. He also noted that these signals could help the FOMC better identify the neutral policy rate. “The flattening yield curve and subdued market-based inflation expectations suggest that the current monetary policy stance is already neutral or possibly somewhat restrictive,” 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 https://www.stlouisfed.org/from-the-president/speeches-and-presentations/2018/how-to-extend-us-expansion 1/2 12/21/22, 5:38 PM How to Extend the U.S. Expansion: A Suggestion | James Bullard | St. Louis Fed About Us Legal Information 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/how-to-extend-us-expansion 2/2