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WASHINGTON, April 2 (Reuters) – A top Federal Reserve
official said faster global growth may be keeping inflation
higher than expected in the United States.
“Typical estimates suggest inflation should have remained
low or even moved lower during 2011,” St. Louis Fed President
James Bullard said in a speech in Beijing.
One explanation may be that the global gap between actual
growth and employment and full economic potential — which is
narrower than that of the United States, and may even be
positive — is affecting U.S. prices, he said.
The St. Louis Fed president spoke last week to a closed-door
gathering. The St. Louis Fed made a copy of his presentation
public on Monday.
