Reply To: Federal Reserve Raises Rates for First Time Since 2018 as Expected by 25 Basis Points

Helmholtz Watson

St. Louis Fed president James Bullard via Reuters Spaces interview:

I would support a rate increase at March meeting
I would also prefer to raise rates at May meeting if I was deciding today
inflation is quite high right now
I don’t think a 50 basis point incrrease really helps us right now
we are doing a light here even though we haven’t yet raise rates
I am thinking of March meeting and second-quarter for potential rate hikes, and then getting going on balance sheet reduction
In July and August we’ll be able to assess how robust inflation seems for rest of the year and adjust accordingly
If inflation ebbs as expected, we may not have to be as aggressive and second half of the year