Free Trial

MNI BRIEF: Bullard Sees Brisk Rate Hike Path to Above Neutral

(MNI) WASHINGTON
WASHINGTON (MNI)

St. Louis Federal Reserve President James Bullard, who dissented in favor of a 50bp rate hike at the March FOMC meeting, said Wednesday the central bank needs to move interest rates swiftly higher to neutral levels and a bit beyond in order to rein in inflation that is “way over” target.

“We readjust the policy rate upwards, a discreet adjustment over a reasonable timeframe up to a neutral level,” he said, noting officials see that level as between 2% and 2.5%. “And then from there you should probably go a little bit above that to put some downward pressure on inflation.”

MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com
MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com

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.