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Fed’s Shift to Slightly Restrictive Policy Close to Zero, Bullard says


February, 08 2019
watermark Economic news

The US Federal Reserve shift their monetary policy into slightly hawkish than the expected neutral stance of policymakers following the interest rate increase in December, according to the St. Louis Federal Reserve Bank President, James Bullard, on Thursday.

Dependent on the inflation adjustment, Bullard assumed the neutral rate to be around zero in the US as it is currently above zero. Thus, they are being slightly restrictive and pushes downward pressure on inflation that has been very low.

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Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.