Fed’s Bullard Favours 0.75 Percentage Point Rate Hike In September

St. Louis Fed Governor, James Bullard said, on Thursday, that he is not prepared to assume that inflation surge has peaked in the United States.

Markets have generally surged as investors price in a soft landing for the US economy and the end of peak inflation. But once the US dollar is forced to be weakened, everything could be threatened.

Bullard’s remarks have pointed out that he is considering support for another large rate rise at the central bank’s policy meeting in September 2022. He also added that he is not ready to say America’s economy has seen the worst of the inflation surge yet.

“We should continue to move expeditiously to a level of the policy rate that will put significant downward pressure on inflation” and “I don’t really see why you want to drag out interest rate increases into next year”, Bullard said.