Bullard Says Rates May Need to Rise Further Amid Strong Growth
- Former St. Louis Fed chief sees “very good” soft landing odds
- Fed officials said they expect rates to stay high for longer
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Former Federal Reserve Bank of St. Louis President James Bullard said the central bank may need to raise interest rates further and hold them higher to guard against the risk of a reacceleration of inflation.
“I think that may be a good thing to do as insurance to make sure that core inflation especially continues to come down at an appropriate pace so the committee can get back to 2% inflation in a reasonable time frame,” Bullard, now the dean of Purdue University’s business school, said Thursday during an interview with Bloomberg TV’s Michael McKee.