News Briefs

The Financial Times reports that St. Louis Fed president James Bullard warned yesterday that the Federal Reserve risks slowing the U.S.’ recovery. Bullard also said that the Fed would not have to raise interest rates very high in order to slow the current expansion and that already-below-target inflation would remain subdued if rates were raised too quickly. FT

Andrew Van Dam of the Washington Post argues that standard statistics such as the trade balance are imperfect measures of bilateral trade. Van Dam contends that the bilateral trade balance exaggerates trade deficits between countries, and that value-added measurements are more accurate measures of a country’s exports. WaPo