Reducing the Fed’s balance sheet before raising rates doesn’t seem to be on the table, said St Louis Fed President James Bullard on Friday.
“I don’t think the lower labor participation rate is threatening the economy.”
“The economy has been very good at adapting to the pandemic, I think that will continue.”
“Danger is we will get too much inflation and that’s not intent of fed’s new framework.”
“I think we’ll continue to see dramatic improvements in the US labor market ahead.”