Fed’s Bullard: Current US macro situation straining Fed’s credibility on inflation

St. Louis Fed Pres. James Bullard speaking on the economy says: Current US macro situation straining Fed’s credibility on inflation Inflation expectations could become unmoored without credible Fed action Fed has taken important steps to return inflation to 2%, including rate hikes and promises of more Fed must follow through on forward guidance with rate hikes Effects of Fed to forward guidance on rates already taking hold on economy, inflation Labor markets grow best, expect continue GDP growth in 2022, risks remain substantial Fed’s Bullard is a voting member on the FOMC board in 2022. He is the most hawkish of the Fed officials currently. Last week he reiterated his view of rates going into a 3.5%. Of note from the Fed is that the quantitative tightening begins today.More from a Bullard:Not advisable to move to quickly and central bankingHave already announced will raise rates by 50 basis points per meeting, that’s a good pathWant to get too higher policy rate expeditiouslyIf unable to bring inflation under control, could be in for a very long haulHopeful to bring inflation down to 2% very soonHave hope that special factors driving inflation will abateIf pandemic had ended cleanly in 2021 Fed would have acted more quickly