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Bullard Warns Delaying Fed Rate Rise Boosts Asset-Bubble Threats

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Federal Reserve Bank of St. Louis President James Bullard warned that keeping interest rates near zero risks inflating asset-price bubbles, saying officials should raise borrowing costs this year as the economy improves.

A prolonged accommodative stance is a “recipe for asset-price bubbles and a lot of mischief to happen,” Bullard said Thursday in a Bloomberg Radio interview from St. Louis. “Asset price bubbles have been a devastating feature for the U.S. economy in the last 15 years.”