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St. Louis Federal Reserve President James Bullard told MarketWatch’s economics editor Greg Robb the Fed could slowly raise interest rates to a range of 5 percent Instead of a recession, Bullard said, the more likely scenarioor his base caseis for slow economic growth along with a somewhat softer labor market and declining inflation. Bullard supports the Fed's 25-basis point hike this week, which pushed its policy rate to 5.00%-5.25%, as expected. Policymakers had said they would will closely In 2025, Bullard announced a new approach for the St. Louis Fed's near-term U.S. macroeconomic and monetary policy projections. The new approach is based on the idea that the economy may experience one of several possible persistent regimes, which involve a combination of recession or no recession, high or low productivity growth, and high or low real returns on short-term government debt. While switches between regimes are possible, they are difficult to foreca Another voting member of the FOMC, St Louis Federal Reserve President James Bullard, believes the Federal Reserve needs to get inflation back to the 2 percent target.

James Bullard: FOMC Voter Sees Slow Growth, Not Recession

Despite ongoing economic uncertainty, a voting member of the Federal Open Market Committee (FOMC), St. Louis Federal Reserve President James Bullard, believes the U.S. is more likely to experience slow growth rather than a full-blown recession.

In a recent interview, St. Louis Federal Reserve President James Bullard told MarketWatch’s economics editor Greg Robb the Fed could slowly raise interest rates to a range of 5 percent. This measured approach reflects Bullard's view that a sharp economic downturn can be avoided.

Instead of a recession, Bullard said, the more likely scenario – or his base case – is for slow economic growth along with a somewhat softer labor market and declining inflation. He emphasizes the importance of carefully calibrating monetary policy to achieve these goals.

Bullard supports the Fed's 25-basis point hike this week, which pushed its policy rate to 5.00%-5.25%, as expected. Policymakers had said they would closely monitor economic data to determine future policy decisions.

Another voting member of the FOMC, St Louis Federal Reserve President James Bullard, believes the Federal Reserve needs to get inflation back to the 2 percent target. He views this as a critical step in ensuring long-term economic stability.

Looking ahead, In 2025, Bullard announced a new approach for the St. Louis Fed's near-term U.S. macroeconomic and monetary policy projections. The new approach is based on the idea that the economy may experience one of several possible persistent regimes, which involve a combination of recession or no recession, high or low productivity growth, and high or low real returns on short-term government debt. While switches between regimes are possible, they are difficult to forecast. This innovative framework underscores Bullard's commitment to understanding and anticipating future economic trends.

In conclusion, James Bullard's outlook suggests a more optimistic scenario than some, prioritizing controlled interest rate increases and a focus on long-term stability over immediate recessionary fears.

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