The Fed: Fed’s Bullard makes case for ‘front-loading’ rate hikes this year

by | Aug 25, 2022 | Stock Market

The Federal Reserve should continue to raise its benchmark policy interest rates swiftly and bring the benchmark rate to a range of 3.75%-4% by year-end, St. Louis Fed President James Bullard said Thursday. “We’ve got inflation right now. We’ve got a strong labor market right now. It seems like a good time to get to the right neighborhood for the funds rate,” Bullard said, in an interview on CNBC.

At the moment, the Fed’s benchmark rate is in a range of 2.25%-2.5%. Already, the Fed has done an extraordinary amount of rate hikes this year as rates were close to zero in March. Other Fed officials have argued for a slightly less aggressive path of rate hikes over the last four months of the year. Earlier Thursday, Philadelphia Fed President Patrick Harker backed a rates near 3.4%. Bullard said this “front-loading” is a good policy because it shows the Fed is serious of fighting inflation and it is necessary to bring rates high enough to put downward pressure on inflation. “You h …

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