Economics
Inflation Prompts Growing Chorus to Call on Fed to Speed Taper
- Ex-Fed officials Dudley, Lacker say taper has to end sooner
- Traders up bets on Fed hike after biggest CPI print since 1990
The Marriner S. Eccles Federal Reserve building in Washington, D.C.
Photographer: Stefani Reynolds/BloombergThis article is for subscribers only.
A growing chorus of market watchers is saying the Federal Reserve may have to speed up its reduction of asset purchases in light of the fastest inflation in 30 years.
The calls, ranging from former New York Fed President Bill Dudley to St. Louis Fed President James Bullard, are coming at a tricky time for the central bank, which only announced plans to reduce its bond-buying program less than two weeks ago, while noting it could tinker with the $15 billion monthly tapering pace if warranted. A week later, a report showed the consumer price index rose at the fastest annual pace since 1990.