Fed's Bullard: Rate hikes will slow economy to trend pace of growth
|St. Louis Federal Reserve Bank President James Bullard said on Friday that he expects the Fed's rate hikes to slow the economy to the trend pace of growth, as reported by Reuters.
Additional takeaways
"Current models probably not a good indicator of recession risk."
"Households in a great position to spend going forward."
"No sign from households that we are in imminent stages of them pulling back meaningfully."
"Some components of GDP behaving strangely."
"Inventory adjustments have been very unusual."
"I am bullish on business investment."
"Unless we get hit by a big shock, unusual to go back into recession at this stage."
"Too early to have a debate about recession probability."
"Rates are still far from neutral."
"Frontloading rate hikes is a good idea in this situation."
"Means we can nip inflation in the bud before it becomes entrenched."
"I want to move up rates to 3.5% this year."
Market reaction
The US Dollar Index showed no immediate reaction to these comments and was last seen unchanged on the day at 104.38.
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