Federal Reserve Bank of St. Louis President James Bullard said economic reports this year have been stronger than forecast and he expects the central bank to raise its target rate by late 2013.
“Generally speaking, the U.S. economy has done better than expected in the first part of 2012,” Bullard said today in Louisville, Kentucky. “My own forecast has rates going up a little sooner” than other central bankers, or “late 2013.”
Several Fed policy makers said slowing growth or higher risks to their economic outlook could warrant additional action to sustain the recovery, according to minutes of their April meeting released yesterday. The Federal Open Market Committee on April 25 reiterated its expectation that subdued inflation and economic slack will probably warrant “exceptionally low levels for the federal funds rate at least through late 2014.”
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