Fed’s Bullard Favors 75 Basis-Point Rate Hike in July, Nikkei Reports

Federal Reserve Bank of St. Louis President James Bullard said he favored sticking with a 75 basis-point rate increase later this month, rather than an even bigger move, following the hotter-than-expected June consumer inflation report.

“So far, we’ve framed this mostly as 50 versus 75 at this meeting. I think 75 has a lot of virtue to it” because it brings the benchmark rate to roughly the neutral level as seen by policy makers, Bullard was quoted as saying in a Nikkei interview on Wednesday that was published Thursday. “As of today, I would advocate 75 basis points again at the next meeting.”