St. Louis Fed President James Bullard said Tuesday it would be a terrible idea to settle for a higher inflation target of 3% in order to inflict less economic pain, arguing that it would be a recipe for a return to the 1970s and would damage the central bank’s credibility.
“It’s kind of a dangerous concept. Now is the time to say no. Two percent is two percent. I do think it means higher for longer rates,” Bullard told a Barclays conference via video feed.