MNI BRIEF: Fed's Bullard Supports 75bp Hike, 3.5% By Year-end

St. Louis Federal Reserve President James Bullard Thursday backed another 75 basis point rate increase at the July FOMC meeting and reiterated the need to get the fed funds rate to 3.5% by the end of the year, saying it's essential to front-load tightening to prevent persistent inflation.

"I think that our goal has been to move to neutral expeditiously and if we do 75 we would be at the level of neutral, long run neutral, that's all aligned in the summary of economic projections. So in that sense, I think it would make a lot of sense to go with the 75 at this juncture," he told reporters on a call after giving remarks at a Little Rock Regional Chamber event. (See: Fed Sees 75bp Hike As New Baseline- Ex-Officials)

"I continue to advocate getting to 3.5% this year and then we can see where we are developing at that point," he said, adding that he is expecting "most of the disinflation would come in 2023" rather than immediately or in the the second half of 2022.