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Central Banks

Bullard Sets Tone for Fed Officials Signaling Hikes Will Roll On

  • Borrowing costs should be high enough to curb inflation
  • Tightening has had limited effect on prices so far, he says
James Bullard
James BullardPhotographer: David Paul Morris/Bloomberg
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St. Louis Fed President James Bullard said policymakers should raise interest rates to at least 5% to 5.25%, hitting financial markets as investors recalibrated bets on how high officials would go.

“In the past I have said 4.75% to 5%,” he told reporters Thursday after giving a speech in Louisville, Kentucky. “Based on this analysis today, I would say 5% to 5.25%. That’s a minimum level. According to this analysis, that would at least get us in the zone.”