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Fed Leaders Pledge Tough Fight to Keep Inflation Credibility

  • Big rate hikes boost central bank credentials, Bullard says
  • A recession could happen, both Barkin and Kashkari say
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Federal Reserve leaders pledged the central bank would continue an aggressive fight to cool an inflation rate that’s at a four-decade high, even if higher rates cause the risk of recession.

Fed Bank St. Louis President James Bullard said he favors a strategy of “front-loading” big interest-rate hikes, and he wants to end the year at 3.75% to 4%, while his Richmond and Minneapolis counterparts -- Thomas Barkin and Neel Kashkari -- said the central bank was committed to lowering inflation and a recession could happen.