June 26 U.S. jobs growth is "way ahead of
schedule," and most data suggest the economy is getting
stronger, a top Fed official said on Thursday, downplaying
recent data that showed a steeper-than-expected plunge in
first-quarter GDP growth.
"It's giving me heartburn, but I think the market's right to
shake this off," St. Louis Fed President James Bullard, speaking
in an interview on Fox Business Network, said of the GDP data
that was released on Wednesday. "I think it's an aberration. I
would throw it out at this point; I think the economy actually
looks pretty good."
Jobs growth has been much stronger than expected since the
Fed began its third round of quantitative easing in 2012,
Bullard said, averaging more than 200,000 new jobs a month.
Inflation, which has been too low, will move higher this
year, to at or above the Fed's 2-percent target by 2015, he
predicted. But as long as inflation keeps to around 2 percent on
average over a period of several years, Bullard said he would
not be too worried.
(Reporting by Ann Saphir; Editing by Chizu Nomiyama)