The US economy expanded 3.1 percent in the third quarter on an annualized basis, but growth is believed to have slowed sharply to barely above 1 percent in the last three months of the year.
“I see an increased risk, given the course the committee has set, that inflation pressures emerge and are not thwarted in a timely way,” he said.
Bullard, speaking on a panel in San Diego, warned that central bankers, in fighting to stabilize financial markets, have sacrificed some of their cherished independence, an attribute many Fed historians and policymakers argue is key to keeping inflation under control.
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