St. Louis' Bullard Suggests 'Wait-and-See' Strategy

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Despite signals of a “global slowdown,” and mixed economic data in the United States, the Federal Reserve should continue its “wait-and-see” approach to monetary policy, Federal Reserve Bank of St. Louis president James Bullard said Tuesday.

“The outlook for 2012 has not changed significantly so far,” with expectations that gross regional product growth will pick up in the last half of the year, he said at an event in St. Louis, according to the Fed.

With European fiscal stress pushing U.S. interest rates down, Bullard said, “One possible [Federal Open Market Committee] strategy is to simply pocket the lower yields and continue to wait and see on the U.S. economic outlook.”

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