The US Federal Reserve shift their monetary policy into slightly hawkish than the expected neutral stance of policymakers following the interest rate increase in December, according to the St. Louis Federal Reserve Bank President, James Bullard, on Thursday.
Dependent on the inflation adjustment, Bullard assumed the neutral rate to be around zero in the US as it is currently above zero. Thus, they are being slightly restrictive and pushes downward pressure on inflation that has been very low.
