Bullard Sees Weak Data Contradicting FOMC's Rate-Hike Path
- St. Louis Fed president cautions rate path ‘overly aggressive’
- Bullard says low unemployment not likely to spark inflation
Capital Link's McGonegal Says Fed Has Window to Hike
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Federal Reserve Bank of St. Louis President James Bullard said recent economic data have been weak and the Federal Open Market Committee’s projected path for raising interest rates may be too steep.
Since March, “longer-term yields have declined, inflation expectations have weakened, and market expectations of the policy rate path have declined,” Bullard said Friday in St. Louis. “This may suggest that the FOMC’s contemplated policy rate path is overly aggressive relative to actual incoming data on U.S. macroeconomic performance.’’