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Fed’s Bullard: Inflation is going to be “sticky” going forward

St. Louis Federal Reserve President James Bullard said on Thursday he thinks inflation is going to be sticky going forward. Regarding monetary policy, he considers that interest rates are currently at the low end of a sufficiently restrictive range. He mentioned the need to “stay at it” to get inflation back into the target. 

Bullard warned that one of the biggest risks for the US economy is that the current inflation becomes entrenched. 

Amid ongoing developments in the bond market, Bullard explained that some yield curve inversion reflects the inflation outlook. According to him, it is a great time to reassess how the deposit insurance is designed. 

Market reaction

The US Dollar Index is trading flat on Thursday around 101.85, on a light volume session ahead of the Easter holidays. The Greenback erased modest gains after Wall Street’s opening bell.
 

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