2.3 C
New York
Wednesday, December 8, 2021

Fed should stand pat on interest rates for now: Bullard

Fed should stand pat on interest rates for now: Bullard© Reuters. FILE PHOTO: St. Louis Fed President James Bullard speaks about the U.S. economy during an interview in New York

LOUISVILLE, Ky. (Reuters) – The Federal Reserve should keep its benchmark interest rate at current levels until there is an upswing in inflation, St. Louis Fed President James Bullard said on Tuesday.

“Inflation data during 2017 have surprised to the downside and call into question the idea that U.S. inflation is reliably returning toward target,” Bullard said in prepared remarks during an appearance in Louisville, Kentucky.

He added that even if the Fed does managed to return inflation to its 2 percent inflation target, it would not happen before 2018 or 2019.

The U.S. central bank has raised interest rates twice this year and appears on course for another upward move in December despite persistently weak inflation.

Bullard has repeatedly said raising interest rates again in such an environment risks harming the economy.

The Fed’s preferred gauge of inflation currently stands at 1.3 percent and has undershot the central bank’s 2 percent for 5-1/2 years.

Bullard, who regains a vote on the Fed’s policy-setting committee in 2019, also said he expects economic growth for the second half of 2017 to exceed expectations but that it will then resume a slower path next year.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

10,932FansLike
12,893FollowersFollow
753FollowersFollow
- Advertisement -

Latest Articles

Popular Articles