WASHINGTON (MarketWatch) — The U.S. economy looks like it has slowed to a steady state where growth is below a 2% trend rate, the unemployment rate doesn’t fall much and inflation is tame, St. Louis Fed President James Bullard said on Wednesday. This “new narrative” suggests rate can stay low, Bullard said in a speech at Washington University in St. Louis. He said this “new narrative” calls for short-term interest rates to rise only to 0.63%. The Fed presently targets rates in a range between 0.25% and 0.5%.
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