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Fed’s Bullard Says Front-Loading Could Lead to Rate Cuts by 2023

  • St. Louis Fed official repeats he wants 3.5% rate by year end
  • Bullard said the stock market decline is an expected repricing
James Bullard

James Bullard

Photographer: Luke MacGregor/Bloomberg

Federal Reserve Bank of St. Louis President James Bullard said the central bank should front-load an aggressive series of interest-rate hikes to push rates to 3.5% at year’s end, which if successful would push down inflation and could lead to policy easing in 2023 or 2024.

“I have also said we should get to 3.5% by the end of the year, which is higher than some of my colleagues,” Bullard said in a Fox Business interview Friday. “The more we can front-load and the more we can get inflation and inflation expectations under control, the better off we will be. In out years -- ‘23 and ‘24 -- we could be lowering the policy rate because we got inflation under control.”