Regional President Speech

12/21/22, 5:41 PM Bullard Discusses Fed’s Monetary Policy Framework during Virtual Panel | James Bullard | St. Louis Fed Home > Latest from President Bullard > Speeches, Presentations and Commentary From the President Bullard Discusses Fed’s Monetary Policy Framework during Virtual Panel October 16, 2020 St. Louis Fed President James Bullard shared his views on several elements of the Fed’s monetary policy framework review, including the move to exible average ination targeting. He spoke during a Reinventing Bretton Woods Committee panel discussion. Bullard noted that having the policy rate near the effective lower bound in recent years has dragged down actual ination outcomes, making it difcult to maintain credibility for the ination target. He said that exible average ination targeting takes into account more explicitly the effective lower bound and its impact on actual ination outcomes. This new strategy would allow policymakers to make up for past misses on ination, he said. Bullard discussed other elements of the review, including the Federal Open Market Committee’s emphasizing that the Fed’s employment goal is broad and inclusive of everybody in the economy; revised language that says the FOMC would worry only about shortfalls, instead of “deviations,” of employment from full employment; and better description of the role of nancial stability in FOMC deliberations. During the panel discussion, he addressed questions related to overshooting the ination target, additional actions the Fed could take should more be needed, and the U.S. Treasury yield curve. The video for the event can be found here. FOLLOW US https://www.stlouisfed.org/from-the-president/speeches-and-presentations/2020/bullard-discusses-feds-monetary-policy-framework 1/2 12/21/22, 5:41 PM Bullard Discusses Fed’s Monetary Policy Framework during Virtual Panel | James Bullard | St. Louis Fed SIGN UP FOR EMAIL ALERTS Receive updates in your inbox as soon as new content is published on our website 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/2020/bullard-discusses-feds-monetary-policy-framework 2/2

James Bullard (2020, October 15). Regional President Speech. Speeches, Federal Reserve. https://whenthefedspeaks.com/doc/regional_speeche_20201016_james_bullard

@misc{wtfs_regional_speeche_20201016_james_bullard,
  author = {James Bullard},
  title = {Regional President Speech},
  year = {2020},
  month = {Oct},
  howpublished = {Speeches, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/regional_speeche_20201016_james_bullard},
  note = {Retrieved via When the Fed Speaks corpus}
}