MNI: Bullard Wants Expeditious Fed Rate Hikes To Neutral

The Federal Reserve should raise interest rates fairly rapidly to perhaps a little bit above neutral to control inflation that's now comparable to the 1970s, St. Louis Fed President James Bullard said Wednesday.

“We will move more quickly than we have in past tightening cycles. We’d want to be at neutral even if inflation came down to 2%, even if inflation magically dissipated,” he said, adding that he thinks policy will need to go beyond neutral to become restrictive.

Minneapolis Fed Research Director Mark Wright told MNI last week the Fed might want to consider a pause in rate hikes as it approaches a neutral fed funds rate.