- James Bullard, St. Louis Federal Reserve Bank President
Federal Reserve Bank of St. Louis President James Bullard expressed his concerns on Monday about low inflation in the U.S., but indicated that easy-money policies of the central bank have been effective to prop up growth in the world's number one economy. He also said that the global economy would benefit to a little extent if major central banks coordinated monetary policy. The scheme, which was introduced by the Fed to combat recession and spur economic growth, has sparked some concerns especially among central banks in the developing economies, where policymakers worry that Fed's unprecedented stimulus programme is destabilizing financial markets. However, the reaction of markets to Fed's decision to start winding down its stimulus measures has been modest thus far.
Meanwhile, the Federal Reserve figures showed that consumer borrowing in the U.S. rose more than expected in February amid surging demand for student and automobile loans. Total consumer credit soared $16.49 billion to $3.13 trillion, while January's reading was revised to show a $13.80 billion advance compared to the previously reported $13.70 billion gain. Improving labour market, increasing home values and stock portfolios contribute to healthier balance sheets and bolster confidence. Growth in income and improved credit scores provide consumers with wherewithal to take out loans for big ticket purchases, thus helping sustain spending.
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