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Home > Former President Jim Bullard > Speeches, Presentations and Commentary From the President Three Themes for Monetary Policy in 2019 February 7, 2019 Presentation (pdf) | Press Release Speaking at St. Cloud State University in Minnesota, St. Louis Fed President James Bullard discussed three themes for monetary policy this year: • The Federal Open Market Committee (FOMC) may miss its 2 percent in�ation target on the low side for the eighth consecutive year in 2019 based on current readings of market-based in�ation expectations. • Labor markets have been performing well, but the feedback from labor markets to in�ation has weakened considerably in the last two decades. • The Treasury yield curve has �attened signi�cantly, and a meaningful and sustained inversion would send a bearish signal for the U.S. economy. “Market-based signals such as low market-based in�ation expectations and a threatening yield curve inversion suggest that the FOMC needs to tread carefully going forward,” Bullard said. “Through its normalization program, the FOMC has already been suf�ciently preemptive over the last two years to contain upside in�ation risk.”