NEW YORK, Feb. 22 Political problems await the
U.S. 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."