A Republican Congress could mean significant changes for the Federal Reserve -- but St. Louis Federal Reserve Bank President James Bullard is hopeful that the core principles behind the Fed will remain unchanged.
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Of course the Fed is their creature, so they can decide to do what they want. But I think it’s worked well for a long period of time as an independent group that’s at arm’s length from the political system,” Bullard said in an interview Tuesday with FBN’s Maria Bartiromo.
“I think our regional structure has been a real strength, where we get voices from around the country on these important decisions that are being made. I don’t think you want to make all of these decisions straight from Wall Street or straight from inside the Beltway,” Bullard added. He said he believes a Republican Congress could still appreciate this aspect of the Federal Reserve’s setup.
As for the outcome of the elections, Bullard expressed his hopes for a government that’s more willing to compromise.
“We’re not addressing key problems that we face. If we can address them even in a way that each party has to give a little and has to compromise a little bit on its principles, [then] that would be a better outcome for the U.S. economy. We’d make at least some progress on these key issues,” Bullard said.
For more on Bullard’s views on the midterm elections, watch the full interview above.