Central Banks
Fed Officials Say Rate Hike Was Needed to Target High Inflation
- St. Louis’s Bullard lifts his forecast for rate peak to 5.625%
- Policymakers say inflation too high, see bank actions working
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Three Federal Reserve policymakers expressed confidence in the actions taken to bolster the financial system and stressed the need to curb high inflation despite concern over banking strains.
Echoing Chair Jerome Powell’s determination to restore price stability, the officials on Friday said this week’s interest-rate increase was clearly needed to rein in an economy running hotter than anticipated. St. Louis Fed President James Bullard also said that he now forecasts raising rates to 5.625% this year, which is 50 basis points more than the median projection of his colleagues.