Fed’s officials rule out tightening pause in June

According to an interview with James Bullard, president of the St. Louis Federal Reserve, raising interest rates even more would be a good “insurance” strategy against inflation, the Financial Times reported on Thursday.

According to the Financial Times, Bullard stated that he will retain a “open mind” going into the next policy meeting in June, but hinted that after 10 consecutive rate rises since last year, he is inclined to support another increase.

“I do expect disinflation, but it’s been slower than I would have liked, and it may warrant taking out some insurance by raising rates somewhat more to make sure that we really do get inflation under control,” Bullard told the newspaper in an interview.

Additionally, Lorie Logan, president of the Dallas Federal Reserve, stated on Thursday that the economic evidence to date does not support delaying a rate increase at the central bank’s upcoming meeting in June.

Logan added that even while there has been some progress in reducing inflation and cooling the labour market, the Fed still has work to do in order to achieve its objective of price stability. Logan has the right to vote this year on the Federal Open Market Committee, which sets interest rates.