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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

By

Steve Matthews and

Catarina Saraiva

November 17, 2022, 1:00 PM UTCUpdated onNovember 17, 2022, 8:30 PM UTC

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.”