St. Louis Federal Reserve Bank President James Bullard said on Friday that the United States economy is very close to the inflation and employment goals set by the Federal Reserve, according to Reuters. Bullard also said that the economy should increase at a robust pace for the remainder of the year.
Bullard spoke to a banking conference saying that the Fed “is much closer to its policy goals than it has been in the past five years.”
Bullard said that the Fed is closer to its goals than it was for much of the time since the 1960s. The goals are full employment and two percent inflation. Bullard expects robust growth for the remainder of 2014 after poor growth due to the harsh winter that plagued most of the country. Bullard spoke of the strong housing starts and the increase in consumer prices.
Bullard believes that global investors have changed their views on the United States economy and now have faith that it has enough strength to survive despite the withdrawal of the stimulus program.
Bullard said that the first-quarter reading of the GDP was an anomaly that came from the heavy snow this winter.
“While first-quarter GDP growth was weak, growth in coming quarters is still predicted to be robust.” Bullard noted that the full-year growth could surpass 2.6 percent, which was reached in 2013.
Looking for employment? Click here to browse all available jobs.Fed's Bullard Says Full Employment and Inflation Close to Reaching Goals by Jim Vassallo