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MNI BRIEF: Fed’s Bullard - Rates Need to Go Up To 4.5% Range

(MNI) WASHINGTON

The Federal Reserve needs to hike interest rates to around the levels implied in the September SEP because the inflation picture failed to improve and even worsened in the summer months, St. Louis Fed President James Bullard said.

“Unfortunately, the inflation news we received over the summer didn’t go our way,” Bullard said in a webcast. That means rates need to be “closer to 4.5,” he said.

Bullard told MNI’s FedSpeak podcast last month rates might need to be “higher for longer,” pushing back against market expectations for rate cuts next year.

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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