The U.S. economy is expected to continue to grow this year even as the Federal Reserve raises interest rates sharply to bring down unacceptably high inflation, St. Louis Fed President James Bullard said on Thursday.
The U.S. central bank’s monetary policy tightening, along with inflation running at more than three times the Fed’s 2 percent target, has stoked fears of a recession, and many economists estimate the most widely cited measure of U.S. economic output, gross domestic product, may have shrunk for a second straight quarter in the April–June period.
Bullard, in slides prepared for a speech at the Little Rock Regional Chamber in Arkansas, pushed back on that narrative, pointing to an alternative measure, known as gross domestic income (GDI), that shows the economy is actually expanding….