7/14/2022, 7:21 PM (Source: TeleTrader)
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Fed's Bullard favors 75 bps rate hike in July

President of the Federal Reserve Bank of St. Louis, James Bullard, said he would vote for the central bank to raise its key interest rate by 75 basis points at the Federal Open Market Committee on July 27.

In an interview with Nikkei Asia published on Thursday, Bullard noted he wouldn't support the decision to increase rates by 100 basis points this month. "So far, we've framed this mostly as 50 versus 75 at this meeting. I think 75 has a lot of virtue to it because the long-run neutral that the committee has... is actually about 2.5%," Bullard explained.

Commenting on the Fed's response to record inflation in the United States, Bullard argued that the targeted 3.5% interest rate is "pretty aggressive," however leaving the possibility for the rates to reach 4% by the end of this year. Inflation hasn't peaked yet, he concluded, adding that he doesn't expect a recession to hit the US.

Baha Breaking News (BBN) / ND