With monetary policy quite accommodative and the economy performing better than expected, the Federal Open Market Committee is “on pause,” but needs to be wary that it doesn’t spark inflation, Federal Reserve Bank of St. Louis president James Bullard said Wednesday.

The biggest risk in pausing “lies in potentially overcommitting to the ultra-easy monetary policy, reigniting the global inflation debacle of the 1970s,” he said at a “Dialogue With the Fed” event in Louisville, according to a Fed release.

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