November 4, 2013 / 2:46 PM / 6 years ago

Fed's Bullard: monetarists need to re-examine inflation models

WASHINGTON (Reuters) - Aggressive Federal Reserve bond buying has not unleashed the high inflation that critics claimed was coming, bolstering the argument for maintaining the program while price pressures remain in check, a senior U.S. central banker said on Monday.

“$85 (billion) is a torrid pace. I will give you that, and a trillion dollars a year is a torrid pace and I’d rather get out of it if we can. But I’d like to meet our goals,” St. Louis Federal Reserve President James Bullard told CNBC television.

At the Fed’s policy meeting last week, Bullard voted in favor of maintaining bond buying, also called quantitative easing, at an $85 billion monthly pace.

“What are you worried about QE? It’s inflation. You’re worried we are going to set off a 1970’s type inflation...it is not coming,” he said. “The monetarist camp, including my own staff ... has got to re-examine some theories here,” he said.

Reporting by Alister Bull; Editing by Chizu Nomiyama

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