Fed Policy 'Exacerbating the Inflation Problem': Bullard

The transcript discusses the unexpected rise in inflation over the past year, highlighting the Open Market Committee's initial expectations and subsequent policy responses. It explains the actions taken during the pandemic, such as lowering policy rates and quantitative easing, and outlines future policy adjustments anticipated for 2022. The discussion emphasizes the forward-looking nature of financial markets and their reaction to policy signals.

What was the inflation target mentioned by the speaker a year ago?

• 3%

• 4%

• 2%

• 1%

What action did the committee take during the pandemic recession?

• Stopped Treasury Securities purchases

• Reduced asset purchases

• Started quantitative easing

• Increased policy rates

What is the committee planning to phase out by mid-March?

• Asset purchases

• Quantitative easing

• Inflation targeting

• Policy rate increases

How have financial markets reacted to the anticipated policy changes?

• They have ignored the changes

• They have remained stable

• They have adjusted pricing

• They have become volatile

What is the expected trend for policy rate increases in 2022?

• Fewer than anticipated

• More than anticipated

• No changes expected

• Decreases expected