Fed has ‘a ways to go’ on interest rate hikes, Bullard says

Fed has ‘a ways to go’ on interest rate hikes, Bullard says By Reuters

Breaking News


Economy 6 minutes ago (Nov 28, 2022 01:11PM ET)

(C) Reuters. FILE PHOTO: St. Louis Fed President James Bullard speaks about the U.S. economy during an interview in New York February 26, 2015. REUTERS/Lucas Jackson

(Reuters) – The Federal Reserve needs to raise interest rates quite a bit further and then hold them there throughout next year and into 2024 to gain control of inflation and bring it back down toward the U.S. central bank’s 2% goal, St. Louis Fed President James Bullard said on Monday.

“We’ve got a ways to go to get restrictive,” Bullard said in an interview with MarketWatch, as he restated his conviction that the Fed’s target policy rate needs to rise to at least a range between 5.00% and 5.25% from the current level of 3.75%-4.00% to be “sufficiently restrictive” to reduce inflation.

Once at a high enough level, rates would then “have to stay there all during 2023 and into 2024” given the historical behavior of inflation, Bullard said.

The Fed has raised its policy rate by 375 basis points this year, the fastest pace of tightening since the early 1980s as it tries to quash stubbornly high inflation. By the central bank’s preferred measure, inflation is running at more than three times the Fed’s target.

“We want to get this inflation under control much sooner than in the 1970s,” Bullard said, noting that he prefers to get the policy rate up in short order to create the conditions for price pressures to ebb throughout next year.

However, Bullard also repeated comments made earlier this month that he would defer to Fed Chair Jerome Powell regarding how much higher to move rates at upcoming policy meetings.

Investors overwhelmingly anticipate the Fed to raise its policy rate by half a percentage point at its next policy meeting on Dec. 13-14.

Fed has ‘a ways to go’ on interest rate hikes, Bullard says

Fed could cut interest rates in 2024, Williams saysBy Reuters – Nov 28, 2022

By Michael S. Derby NEW YORK (Reuters) -New York Federal Reserve President John Williams on Monday declined to say how fast and how far he believes the U.S. central bank will need…

Investors hope Beijing will lift COVID curbs faster as protests douse marketsBy Reuters – Nov 28, 2022

By Karin Strohecker and Dhara Ranasinghe LONDON (Reuters) – Rare protests rippling across China over Beijing’s zero-COVID-19 policy may have unleashed a fresh wave of political…

Euro eases as Lagarde threatens to hike into restrictive territoryBy Investing.com – Nov 28, 2022

By Geoffrey Smith
Investing.com — The euro eased on Monday as European Central Bank Christine Lagarde warned that inflation hasn’t peaked yet and left open the possibility of…

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning

(C) 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

About the author