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Fed’s Bullard: rates too low for too long could be risky

May 23, 2016 by · Leave a Comment 

U.S. interest rates being kept too low for too long could cause financial instability in future and stronger market expectations for a rate rise are “probably good”, St. Louis Federal Reserve President James Bullard said on Monday. A relatively tight labor market in the United States may also exert upward pressure on inflation, raising the case for higher interest rates, Bullard added. “I do worry that keeping rates too low for too long could feed into future financial instability even if it…

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Fed’s Bullard: rates too low for too long could be risky