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Last-Resort Fed Hike Enters Debate as Bullard Invokes 1994 Move

  • A 75 basis-point increase might be mulled if inflation worsens
  • St. Louis Fed chief has led hawkish shift over the past year
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Fed's Bullard Won't Rule Out 75 Basis Point Hike
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The Federal Reserve’s most hawkish official cracked open the door to discussing the first 75 basis-point interest-rate hike since 1994, a move economists say would be a last resort in case inflation further spirals out of control.

St. Louis Fed President James Bullard on Monday gave high praise for former Fed Chairman Alan Greenspan’s decision to raise rates by three quarters of a percentage point that year, saying it “set up the U.S. economy for a stellar second half of the 1990s, one of the best periods in U.S. macroeconomic history.”