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Federal Reserve Bank of St. Louis President James Bullard in Jackson Hole, Wyo., on the outlook for job growth and inflation.
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Now we're back with Jim Bullard the president of the federal reserve bank of Saint Louis -- who -- joining us now for more on Ben Bernanke's big speech today here.
And Jackson -- and welcome back -- do well Fox Business but let's keep let's keep talking about the chairman's speech because it was it.
Pretty clear.
That.
The number one that issue for him -- jobs.
Jobs and jobs and that.
And that was his emphasis job creation is not -- To.
Well -- -- there's no question about has been a slow recovery.
And the jobs situation is now and and unemployment is very high by historical standards in the US so -- right to emphasize.
You know that's the situation program.
I would say -- how much can monetary policy do about that vs labor market policy -- you have.
Unemployment insurance programs we do have job training programs.
Those the traditional tools to try to work with the unemployed and get -- back into the work force.
It's a very blunt instrument to try to ease monetary policy to sort of maneuver around through interest rates and then someone gets jobs created.
You know I understand -- theory about and everything but that's very blunt compared to labor market policies that could address.
Job creation more directly.
Yeah and and the chairman actually.
Talked about the limits of monetary PLC -- and he says -- -- cannot neutralize the fiscal and financial risks that the country faces it's certainly cannot.
Fine tune economic outcomes here you thinking as it was.
He's talking about that you know some of the truth of policy but also is trying to manage expectations.
Well I think he has Donna great to have I think -- and trying to be forceful and and talking about the limits of monetary policy.
But because there there's -- too much else going on I think everything keeps circling back to monetary policy so we have to keep saying.
You know there's certain -- you know we can do some things but.
But there are limits to to what can really be done through through -- This other headwinds that are still out there obviously a number one fiscal.
Uranium talked about -- there and alive and alive segment yeah.
Or energy prices.
Yeah I'm a I'm a little concerned that you know when we did QE2.
We didn't get burst.
On the commodity prices and that was.
Kind of counterproductive for that is that time and I -- a lot of concern that real aggressive action by the Fed would feed into.
Sort of problems in the Middle East and could create a dynamic where you get that kind of reaction again so energy prices course and then just recently so yeah.
What about inflation overall does -- under control to -- food and energy.
Yeah I mean have preferred a look at the overall index the overall index is actually down.
More of them the food and energy.
If you just look at core.
CPI measures -- a year -- is actually a little above our target PC measured from a year ago is a little lower target so.
You know on now we're pretty pretty close.
Target on on inflation right now.
Also inflation expectations as measured by the five year tips markets right around 19 or two to 2% so.
We're basically right on target as far as inflation goes Bowen isn't this isn't bank thanks for Jones all right well thanks for having me.
Very good.
