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Fed's Bullard - U.S.-China trade relations probably had to come to a head

FILE PHOTO: "Challenges for Monetary Policy" conference in Jackson Hole, Wyoming

EFFINGHAM, Ill (Reuters) - St. Louis Federal Reserve President James Bullard said on Monday it was probably inevitable that the United States and China would clash on trade, given that China has not lived up to commitments made when it was allowed into the World Trade Organization.

"The Chinese were allowed into the WTO on an implicit promise that they would abide not just with the letter but with the spirit of the WTO and that they would transition towards democracy," Bullard said. "Neither of those things have happened."

(Reporting by Howard Schneider; Editing by Andrea Ricci)