Bullard Discusses Raising Fed Funds Rate to Lower Inflation with Bloomberg TV

Abstract: St. Louis Fed President Jim Bullard discussed the need to continue raising interest rates to put downward pressure on inflation. He spoke in a Bloomberg TV interview at the Jackson Hole Economic Symposium in Wyoming. Bullard reiterated that the Federal Open Market Committee should lift the federal funds rate target to 3.75%--4% by the end of the year. “I'd like to get to that level, and sooner is better as far as I'm concerned,” he said. Complementing the rate hikes has been the steady reduction in the Federal Reserve’s balance sheet, which has put some upward pressure on longer-term interest rates, Bullard said. He also noted that quantitative tightening is global. “And so you've got many central banks moving in the same direction here, all at once. That may push longer-term yields higher and help us keep inflation under control globally,” Bullard said. In addition, he talked about the responsiveness of the market to rising interest rates.

Keywords: interest rates; inflation;

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Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Speech

Publication Date: 2022-08-26