Central Banks

Bullard Says Oil Surge Might Make Fed’s Job More Difficult

  • Bullard says higher interest rates needed to curb inflation
  • Even without OPEC cut, oil prices were likely to rise, he says
Bullard Says Fed Needs Rates Above 5%Source: Bloomberg
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Federal Reserve Bank of St. Louis President James Bullard said OPEC’s decision to cut output was unexpected and an increase in oil prices could make the Fed’s job of lowering inflation more challenging.

“This was a surprise,” he said Monday during an interview on Bloomberg Television with Michael McKee. “Whether it will have a lasting impact I think is an open question.”