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Search Site Home > Newsroom > St. Louis Fed's Bullard Discusses the Outlook for the U.S. Economy and Monetary Policy 8/19/2010 ROGERS, Ark. – St. Louis Fed President James Bullard said Thursday that while the U.S. macroeconomic outlook has been downgraded, continued expansion is the most likely course going forward. He noted that should economic developments suggest increased disin ation risk, purchases of Treasury securities in excess of those required to keep the size of the balance sheet constant may be warranted. In his presentation, “The State of the U.S. Economy and Monetary Policy,” given at a Fed Exchange conference held in Rogers, Ark., Bullard said that core in ation is at low, but still manageable levels, and that any additional quantitative easing undertaken by the FOMC should be a disciplined reaction to further disin ation risks. “Large, sudden purchases rarely are optimal,” he said. “ ‘Shock and awe’ is almost never a good way to proceed.” “Policy actions should be commensurate with the risks that the economy faces. A series of smaller policy actions can add up to a large action, but only if incoming data suggest that as the appropriate course,” he said. “Purchase size should be in proportion to the size of any deterioration in the outlook.” A key goal of the program should be to keep core in ation in the U.S. from falling close to levels observed in Japan. Bullard said that the European sovereign debt crisis has abated somewhat, but remains a factor in the global economic mix. GENERAL Home About Us Bank Supervision Careers Community Development Economic Education Events Inside the Economy Museum Newsroom On the Economy Blog Open Vault Blog OUR DISTRICT Little Rock Branch Louisville Branch Memphis Branch Agricultural Finance Monitor Housing Market Conditions SELECTED PUBLICATIONS Bridges Economic Synopses Housing Market Perspectives In the Balance Page One Economics The Quarterly Debt Monitor Review Regional Economist ST. LOUIS FED PRESIDENT James Bullard's Website INITIATIVES Center for Household Financial Stability Dialogue with the Fed Federal Banking Regulations FOMC Speak In Plain English - Making Sense of the Federal Reserve Timely Topics Podcasts and Videos DATA AND INFORMATION SERVICES CASSIDI® FRASER® FRED® FRED® Blog GeoFRED® IDEAS FOLLOW THE FED Twitter Facebook YouTube Google Plus Email Subscriptions RSS CONTACT US | LEGAL INFORMATION | PRIVACY NOTICE & POLICY | FEDERAL RESERVE SYSTEM ONLINE
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