MNI BRIEF: Fed Bullard - Chance Of 'Relatively' Soft Landing

Since modern central banks have more credibility than their counterparts in the1970s, it appears that the Federal Reserve may be able to bring inflation down in an orderly manner and achieve a relatively soft landing, St. Louis Fed President James Bullard said Friday.

"The Fed has considerable institutional credibility compared with its 1970s counterpart, suggesting that a soft landing is feasible in the U.S. if the post-pandemic regime shift is executed well," he said, according to prepared materials, without specifying how much further he would like to see rates rise.

The path to the soft landing requires a credible switch of monetary-fiscal policy to the policy regime that existed before the pandemic, he added.