Regional President Speech

12/21/22, 5:39 PM What Is the Best Strategy for Extending the U.S. Economy's Expansion? | James Bullard | St. Louis Fed Home > Latest from President Bullard > Speeches, Presentations and Commentary From the President What Is the Best Strategy for Extending the U.S. Economy's Expansion? September 12, 2018 Presentation (pdf) | Press Release In Chicago, St. Louis Fed President James Bullard discussed a possible strategy for extending the U.S. economic expansion. He said his preferred approach relies on placing more weight on financial market signals, such as the slope of the yield curve and market-based inflation expectations, than has been customary in past U.S. monetary policy strategy. He explained that the empirical relationship between inflation and unemployment (the so-called Phillips curve) has largely broken down over the last two decades, leaving monetary policymakers without a clear guidepost for action. “Handled properly, current financial market information can provide the basis for a better forward-looking monetary policy strategy,” he told the CFA Society Chicago. He also noted that these signals could help the FOMC better identify the neutral policy rate. “The flattening yield curve and subdued market-based inflation expectations suggest that the current monetary policy stance is already neutral or possibly somewhat restrictive,” he said. FOLLOW US SIGN UP FOR EMAIL ALERTS Receive updates in your inbox as soon as new content is published on our website https://www.stlouisfed.org/from-the-president/speeches-and-presentations/2018/what-is-best-strategy-extending-expansion 1/2 12/21/22, 5:39 PM What Is the Best Strategy for Extending the U.S. Economy's Expansion? | James Bullard | St. Louis Fed SIGN UP QUICK LINKS About Us Legal Information Contact Us Privacy Policy Careers Doing Business with the Fed Events Federal Reserve Services Visiting the St. Louis Fed Federal Banking Regulations https://www.stlouisfed.org/from-the-president/speeches-and-presentations/2018/what-is-best-strategy-extending-expansion 2/2 

James Bullard (2018, September 11). Regional President Speech. Speeches, Federal Reserve. https://whenthefedspeaks.com/doc/regional_speeche_20180912_james_bullard

@misc{wtfs_regional_speeche_20180912_james_bullard,
  author = {James Bullard},
  title = {Regional President Speech},
  year = {2018},
  month = {Sep},
  howpublished = {Speeches, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/regional_speeche_20180912_james_bullard},
  note = {Retrieved via When the Fed Speaks corpus}
}