Federal Reserve President Louis James Bullard on Friday appeared to call for a sharp increase in the Fed’s overnight lending rate to more than 3% this year. He saw the need for this measure to curb inflation.
In a statement released it explained its disapproval of the Fed’s approval for a quarterly hike this week. Bullard noted the Fed needs to move fast in dealing with this situation or risk losing credibility on its inflation targets.
He not only disagreed with the rate set but with the frequency with which the Fed planned in its desire to raise interest rates.
“The U.S. economy has proven to be very resilient, ”against pandemics and geopolitical risks, Bullard said. With inflation above 6%, three times the Fed's target of 2%, Bullard thinks more Fed action is needed “to manage the U.S. macroeconomic situation. frugally. ”
While most Fed officials see six more quarterly rate hikes this year, 7 out of 16 current Fed policymakers, like Bullard, argue that the Fed should raise rates higher by the end of the year.
So far Bullard has objected to the Fed’s decision four times since becoming president of the St. Louis Fed. Louis in 2008, including three times under current Fed chairman Jerome Powell.
