Fed's Bullard: Reiterates call for 100bps tightening by July 1, cites high inflation once more
|St Louis Fed President and 2022 voting FOMC member James Bullard on Thursday reiterated his calls for 100bps of hikes to the Federal Funds target range by July 1, again citing high inflation. We want to pursue the best policy we can and let the market adjust appropriately, he said in an interview on CNN, adding that this is the moment where we need to share less accommodation.
Markets have already done a lot of pricing, Bullard noted, adding that he didn't think raising rates would be risking a recession. Rather, this is about the Fed's first moves away from accommodative policy, he continued, noting that the labour markets will continue getting tighter and inflation is eating into wages.
Bullard said that he was confident that we'll come to the right conclusion, but we must act now and stated that even if there was "repricing" in asset markets, asset holders would remain in good shape. Low rates feed into a certain amount of exuberance, he added, saying that he would mostly be concerned about the housing market.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.