Central Banks
Fed’s Bullard Says Markets Underestimating Chances of Higher Rates
- Sees ‘heavy degree’ of expectations for inflation to dissipate
- Reiterates view Fed should raise rates to at least 5%
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Federal Reserve Bank of St. Louis President James Bullard said financial markets are underestimating the chances that policymakers will need to be more aggressive next year in raising interest rates to curb inflation.
“There is still a heavy degree” of expectations that inflation will go away naturally, Bullard said Monday in a webcast interview with MarketWatch and Barron’s.