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Friday, Sep 20
Bullard: Inflation below target a big deal
- Removing accommodation when inflation is below the 2% target and falling hurts the Fed's credibility just as much as adding to stimulus were inflation above 2% and rising, the St. Louis Fed's Jim Bullard tells Bloomberg. He worries the FOMC has put too much attention on the employment situation and not the price level.
- A string of weaker economic data is what led the Fed to delay the taper this week, he says. Decisions going forward - as always - will be data dependent.
- The rise in interest rates over the summer was a "surprise" for many on the FOMC.