Political problems await when Fed needs to reverse policy: Bullard
NEW YORK (Reuters) - Political problems await the Federal Reserve when it comes time to reverse its very accommodative monetary policies, Federal Reserve Bank of St. Louis President James Bullard said on Friday.
"We're going to pay interest on reserves to large banks in the U.S., and to foreign banks, to the tune of tens of billions of dollars, at a time when we're not going to pay anything back to the U.S. Treasury," Bullard said in describing the part of the Fed's planned strategy for the future.
"That sounds like a recipe for political problems."
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