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MNI BRIEF: Fed’s Bullard Wants Rates ‘Expeditiously’ At 3.5%

(MNI) WASHINGTON

The Federal Reserve should move quickly to push interest rates significantly above their neutral level in order to control runaway U.S. inflation, St. Louis Fed President James Bullard said Friday.

“I want 3-½% expeditiously, then at that point we can see where we are. Then we can still if inflation expectations are still going the other way," he said.

Bullard said the idea of frontloading rate hikes is "getting the policy rate to neutral, and for me, above neutral now, because that’s what the optimal response would be, as opposed to what the committee's been saying for a long time which is that you’re going to edge up to the neutral rate and stay there.”

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

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