Bullard's Optimism on Soft Landing
Speaking at a conference at Columbia University in New York, Bullard stated that a "soft landing is feasible in the U.S. if the post-pandemic regime shift is executed well." He shared a similar level of optimism earlier this year.
Credibility of Modern Central Banks
Bullard's confidence is based on the Federal Reserve's "considerable institutional credibility" compared to the era of former Fed chairman Paul Volcker. According to Bullard, modern central banks have more credibility than their 1970s counterparts.
Inflation and Recessions in the 80s
In the early 1980s, the peak of inflation as measured by the consumer price index ran above 14%, and the U.S. economy was in back-to-back recessions in 1980 and 1981-82. However, few believed that the Fed was serious about reducing inflation at the time.
Bullard is Not a Voting Member
It's worth noting that Bullard is not a voting member of the Fed's rate-setting committee this year.
