Bullard: Why Removing Monetary Policy Accommodation Is Necessary

From stlouisfed.org

During the COVID-19 recession, the Federal Open Market Committee (FOMC) reduced the target range for the federal funds rate to near zero and began large purchases of U.S. Treasury securities and agency mortgage-backed securities. Although the recession ended nearly two years ago, U.S. monetary policy settings remain set near peak accommodation—with the policy rate only 0.25 percentage points higher now and the size of the Fed’s balance sheet at nearly $9 trillion. The Federal Reserve has a mandate to promote maximum employment and price stability. The labor market has fully recovered from the recession by nearly ... (full story)