FILE PHOTO: St. Louis Fed Chairman James Bullard talks about the American economy during an interview in New York. February 26, 2015. REUTERS / Lucas Jackson
Oct 14 (Reuters) – Current high levels of inflation may not decline as soon as many Federal Reserve officials expect, St. Louis Chairman James Bullard said Thursday, again urging the central bank to seek a faster reduction in your bond purchase program.
“I think it’s worrying,” Bullard told a virtual meeting of the Euro50 Group, regarding inflation.
“While I think there is some chance that it will dissipate naturally in the next six months, I would not say that it is such a strong case that we can count on it to happen.” Bullard added that he sees only a 50% chance either way.
The Fed indicated on Wednesday that it could begin to reduce its support for the US economy in times of crisis in mid-November, amid growing concerns about inflation, and said that the reduction of its bond-buying program would last until mid-November. of the next year.
Bullard has been one of the strongest advocates among his peers to accelerate the end of the Fed’s phasing out of its bond buying program, which was implemented at the start of the COVID-19 pandemic to stabilize financial markets and maintain low loan costs.
It has said it would like to finish the cut by the first quarter of 2022, as it would allow the central bank to raise interest rates earlier than expected if inflation remains uncomfortably high.
(Reporting by Lindsay Dunsmuir; edited in Spanish by Carlos Serrano)