With the U.S. Federal Reserve perhaps edging toward a September rate increase, St. Louis Federal Reserve president James Bullard is sticking with his view that a single move is all that's needed for a long time to come.
In a presentation prepared for delivery in St. Louis on Wednesday, he said there was no reason yet to conclude the U.S. has shifted from the low-growth, low-inflation "regime" that makes low rates appropriate for what he has termed the "foreseeable future," perhaps two and a half years. Until such a regime change occurs, Bullard, in a recently reconfigured view of how to analyze U.S. policy, has said he feels there is no reason to raise key interest rates more than once, to 63 basis points.
"Risks associated with this projected policy rate are likely to the upside," Bullard said in remarks prepared for delivery at an asset management conference at Washington University in St. Louis. But until risks either shift the U.S. to a new path, he said there is no reason to alter rates.