ST. LOUIS (Reuters) - St. Louis Federal Reserve bank President James Bullard said he is increasingly concerned that his colleagues’ “zeal” to raise interest rates despite weak inflation amounts to a policy mistake that harm progress toward the Fed’s targets.
“If we go too far in our zeal to normalize we might push inflation expectations down further and that might hinder our ability to hit our target,” Bullard said.
“The December meeting is going to be too early to make a determination on whether inflation is coming back. I don’t see how we can get the data on that. I am getting more concerned that we might make a policy mistake.”
Reporting by Howard Schneider