June 26 St. Louis Federal Reserve Bank President
James Bullard on Thursday said he has penciled in U.S. inflation
of 2.4 percent by the end of 2015, a forecast that he said is
probably higher than that of any of his Fed colleagues.
But in an interview on Fox Business Network, Bullard
expressed some comfort with that increase, saying that the Fed
cannot exactly target inflation, which will sometimes will run a
bit higher than the U.S. central bank's 2-percent goal.
Over the long run, he said, U.S. economic growth is likely
to be just over 2 percent, lower than historical norms but
higher than some of his colleagues have recently suggested.
Interest rates over the next seven to 10 years will rise
back to historical norms of 4 percent to 4.5 percent, but over
the shorter term rates will not get that high, he said.
(Reporting by Ann Saphir; Editing by Chizu Nomiyama)