Home Economy A hawkish Bullard sees more volatile economic “regime” emerging in U.S.

A hawkish Bullard sees more volatile economic “regime” emerging in U.S.

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WASHINGTON, Aug 3 (Reuters) – The coronavirus pandemic may have pushed the United States into a volatile era of stronger growth and better productivity, but higher interest rates and faster inflation as well, St. Louis Federal Reserve president James Bullard said, elaborating on why he thinks the U.S. central bank should end its crisis-era policies.

Bullard, who five years ago said he viewed the United States as mired in an epoch of low growth, low productivity and low inflation, said he is beginning to think a new “regime” may have arrived where the Fed will have to cope with faster change and more frequent shocks.

For more than a decade before the pandemic “economic growth was slow and not very volatile and inflation in tandem was slow and not very volatile,” Bullard said in an interview with Reuters on Monday. “This environment is a very different one where you have upset the global equilibrium…The reverberations will continue, and you…

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