Two Federal Reserve officials have signaled the likelihood of a 0.25-percentage-point May hike in separate interviews. This confirms the view of debt markets which now give an 8 in 10 chance of rates exceeding 5% at the Fed’s upcoming May 2-3 meeting.
Bullard’s View
James Bullard, President of the Federal Reserve Bank of St Louis signaled that another hike was appropriate given “persistent” inflation in a recent interview. Bullard downplayed the markets’ recession fears given the strength of recent employment data. He also pointed to low levels of financial stress implying that the recent banking crisis may have passed.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
Login if you have purchased