Free Trial

Bullard On Potential Further Hikes As Insurance

US OUTLOOK/OPINION
  • Speaking earlier on Bloomberg TV, former St Louis Fed president Bullard said “I think that [hiking further] may be a good thing to do as insurance to make sure that core inflation especially continues to come down at an appropriate pace so the committee can get back to 2% inflation in a reasonable time frame”
  • “It makes a lot of sense” that the FOMC yesterday emphasized rates will need to stay higher for longer, given the strength of the economy and sturdy labor market. “The prospects for a soft landing are very good, but you haven’t landed until you get inflation back to 2%”.
  • Bullard was of course a proponent of front-loading an aggressive hiking cycle, and the FOMC has increasingly adopted the higher for longer stance as seen in yesterday's hawkish dot plot with the 2024 and 2025 dots increased 50bps to 5.1% and 3.9% respectively.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.