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Fed’s Bullard Leans ‘More Strongly’ to Third 75 Basis-Point Rate Hike

  • St. Louis Fed chief says Wall Street is underpricing rate path
  • An improved CPI shouldn’t affect September decision, he says

Federal Reserve Bank of St. Louis President James Bullard says he has become more supportive of a third straight 75 basis-point interest rate increase and Wall Street is underestimating the likelihood that the Fed will hold rates at higher levels next year.

‘’I was leaning toward 75 and the jobs report was reasonably good last Friday,” Bullard said in a Bloomberg News interview late Thursday in St. Louis. While the consumer price index may show progress when it’s reported next week, “I wouldn’t let one data point sort of dictate what we are going to do at this meeting. So I am leaning more strongly toward 75 at this point.”