Fed’s Bullard in a Reuters interview says:
- US recession predictions ignore strength of labor market
- Pandemic savings still to be used
- Not much clear progress on inflation means interest rate needed to continue to rise
- Still sees adequately restrictive policy rate at 5.5% – 5.75% range, bias to hold for longer until inflation contained
- Risk of bank stress causing broad problems seems to have diminished
- Fed should avoid extensive forward guidance and next meeting, keep options open
Fed Bullard and Feds Waller are both lobbying for multiple rate hikes still to come.
