IMI and OMFIF jointly organized the Urban Forum in Beijing, With James Bullard, President of the Federal Reserve Bank of St. Louis, Specially Invited to Delivering a Speech

2016-05-23 IMI

On May 23rd, the International Monetary Institute (IMI) of Renmin University of China and the Official Monetary and Financial Institutions Forum (OMFIF) jointly organized the 2016 Urban Forum in Beijing. James Bullard, president of the Federal Reserve Bank of St. Louis and a member of the Monetary Policy Committee (MPC) meeting, attended the forum and delivered a speech. The forum was hosted by David Marsh, the Managing director and Chief Executive Officer of the OMFIF. Mr. Bullard’s speech was themed “Slow Normalization or No Normalization”. He firstly discussed two views on the recent U.S. monetary policy: one is that based on the evolvement of the economy, the FOMC would gradually increase the policy rate; the other view holds that according to the market-based forecasts of FOMC policy, the policy rate would remain relatively stable. These two views have shown two different expected policy rate paths in the next several years. Later, Mr. Bullard briefly analyzed and contrasted each view, and pointed out that the main reasons for the gradual increase of the policy rate are the relatively strong U.S. labor markets, the U.S. inflation closer to target of 2%, and the waning international headwinds. However, in the market-based outlook, the slow U.S. real GDP growth and low U.S. inflation expectations have major influence on market analysis which suggests that the policy rate will stay at a relatively low level for a while. During the Q&A session, Mr. Bullard patiently responded to the audience’s questions concerning his personal views about the spillover effect of the U.S. monetary policy on emerging market countries, his predicts and ideas on the prospect of the internalization of RMB, the potential problems that might occur during the internalization of a currency, and whether and how other central banks’ decisions are considered during the design of the U.S. monetary policy. It was noted that James Bullard joined the the Federal Reserve Banks in 1990, and now is the president of the Federal Reserve Bank of St. Louis and a member of the MPC meeting. As an economist, his researches have appeared in numerous professional journals, including the American Economic Review, the Journal of Monetary Economics, Macroeconomic Dynamics and the Journal of Money, Credit and Banking. Mr. Bullard strongly advocates that the MPC meetings should consider overall inflation instead of core inflation to evaluate the monetary policy.

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IMI and OMFIF jointly organized the Urban Forum in Beijing, With James Bullard, President of the Federal Reserve Bank of St. Louis, Specially Invited to Delivering a Speech

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