St. Louis FED President James Bullard ‘Wouldn’t Rule Out’ Bigger Rate Hikes
Speaking to the Council on Foreign Relations April 17, St. Louis Federal Reserve Board President James Bullard reiterated the Federal Reserve target of 3.5% interest rates by year-end with half-point hikes, mentioning the Taylor rule and the 1994 hike of 75 basis points. He also opined that it is too soon to harbor recession worries after only one rate hike. Bullard, who has been vocal about more aggressive rate hikes, was the only vote for a 50-basis point hike at the Fed meeting in March. His sense of urgency can be seen in both the Bank of Canada and the Reserve Bank of New Zealand, who raised their benchmarks by 50 bp this month, and could become more prevalent in the near term. Read more.