Federal Reserve Bank of St Louis President James Bullard also said the United States Federal Reserve could shrink its balance sheet next.

By Steve MatthewsBloomberg

Published On 6 Jan 2022

Federal Reserve policy makers could start to raise their target interest rate as soon as March and shrink the central bank’s balance sheet as a next step in response to surging inflation, Federal Reserve Bank of St. Louis President James Bullard said.

“The FOMC could begin increasing the policy rate as early as the March meeting in order to be in a better position to control inflation,” Bullard, referring to the Federal Open Market Committee, said in remarks prepared for delivery to the CFA Society St. Louis on Thursday. “Subsequent rate increases during 2022 could be pulled forward or pushed back depending on inflation developments.”

Bullard, who has recently been among the most hawkish policy makers, endorsed the policy committee’s pivot

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