Economics
Fed Officials Stay Course on Half-Point Hikes Despite Hot Prices
- April consumer inflation higher than expected, dimming outlook
- Data boost expectations the Fed will continue large rate hikes
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Federal Reserve officials face pressure for more aggressive action after a hotter-than-expected inflation reading for April, though so far officials are sticking with their strategy to keep raising interest rates by a half point at each of their next two meetings.
“We’ve got a plan in place, which is 50 basis points at the last meeting and teeing that up for future meetings as well,” St. Louis Fed President James Bullard said during an interview with Yahoo! Finance on Wednesday. “I think that’s a good benchmark for now.” Asked if a 75 basis point move might be necessary, Bullard said that was not his base case.