A top Federal Reserve official on Tuesday downplayed the Fed's nod to international developments in its latest policy statement, saying it was simply an acknowledgement of constant U.S. central bank discussion on the potential impact of global market events.
St. Louis Federal Reserve Bank President James Bullard said the Fed always takes international events into account and, in his view, the insertion of the word "international" was a recognition of that.
Bullard repeated his view that the Fed needs to raise rates sooner and then move gradually higher after that.
He also said that the oil price plummet is distorting market-based inflation expectation measures, and that these measures should be set aside until energy prices stabilize.
Bullard was speaking at the annual Delaware Economic Forecast event at the University of Delaware.