J. Boulard: Inflation in the US is growing at an unsatisfactory pace

The current US price hike is lower than what it should be if the Fed wants to reach target inflation of 2%, according to James Bullard, head of the St. Louis reserve.
Bullard commented that prices are currently 4.6% lower than those between 1995 and 2012, when inflation grew by targeted two percent.
Too low inflation was one of the main reasons for the Fed not to raise interest rates in the US more than three times since the big crisis, but since the end of last year, the reserve has seen signs of accelerating inflation.
These views, however, materialized in the expectations of a large number of market participants for three rises in interest rates this year.
Bullard also commented that he expects a minimal impact on long-term interest rates, such as the fall in the Fed's balance sheet, which he hopes will begin in the second half of this year.
Unemployment in the United States is at 4.4% in April, below the Fed's steady levels. Most of the Fed representatives expressed the view that we will see three interest rises this year and inflation may be one of the few brakes for that.