The Federal Reserve may need to lower its interest rates in order to boost inflation in the United States if the picture of the price level after the summer is as weak as it is today. That said the St. Louis Fed boss, James Bullard, Friday in an interview with Reuters news agency.
This means that a senior director of the American umbrella of central banks is suddenly open to an interest rate cut. President Donald Trump has repeatedly urged the Fed to cut interest rates to support economic growth. But the Fed did not want to do that, partly because it is going very well economically in many areas. For example, job growth is very strong.
Bullard and the other policy makers at the Fed agreed to maintain interest rates on Wednesday. He emphasizes in the interview that this was a logical step, because the Fed has recently changed course considerably with the announcement that interest rates will probably not rise this year. Bullard, however, finds the current inflation rates on the low side.