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2022-03-22
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Bullard Says ‘Faster Is Better’ for Fed in Rate-Hike Strategy
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Bullard estimates the rate at 2%, while the median of his colleagues puts it around 2.4%. Their latest quarterly projections -- released last week -- show they see rates rising to 1.9% by the end of this year and 2.8% by the end of 2023.</p><p>The Federal Open Market Committee last week voted 8-1 to raise rates by a quarter percentage point for the first time since 2018, with Bullard dissenting in favor of a half-point hike and commencing the roll-off of the central bank’s nearly $9 trillion balance sheet. Chair Jerome Powell said Monday that he and his colleagues were prepared to raise rates by a half point at their May 3-4 meeting if needed as they try to contain the hottest inflation in 40 years.</p><p>Asked how quickly the Fed should move, Bullard said “faster is better,” adding that “the 1994 tightening cycle or removal of accommodation cycle is probably the best analogy here.”</p><p>From 1994 to early 1995, the Fed under Alan Greenspan raised rates from 3% to 6% and achieved a “soft landing” for the economy with inflation contained and continued strong growth, leading to a 10-year expansion that was the longest ever at that point. Powell, who has often praised Greenspan as a model, cited the tightening as an example of his goal for the economy on Monday.</p><p>“I would probably get to a restrictive policy so we are putting some downward pressure,” Bullard said. “History tells us that the faster we moved to that situation, the better chance we will have of moving inflation back to target and getting a boom in the U.S. economy.”</p><p>Bullard praised Powell’s speech Monday but said it was too early to conclude whether the committee would go along with a half-point move in May. He said such a move could be made without disrupting markets.</p><p>“We came out of the pandemic and we got surprised by inflation,” Bullard said. “But now what you have to do is move the policy rate up discreetly a fair amount -- not to be too disruptive, but I think 50 basis points should definitely be in the mix.”</p></body></html>","source":"lsy1584095487587","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Bullard Says ‘Faster Is Better’ for Fed in Rate-Hike Strategy</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBullard Says ‘Faster Is Better’ for Fed in Rate-Hike Strategy\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-03-22 21:59 GMT+8 <a href=https://finance.yahoo.com/news/bullard-says-faster-better-fed-125737661.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Federal Reserve Bank of St. Louis President James Bullard said U.S. monetary policy needs to be tightened quickly to stop putting upward pressure on inflation that is already too high, reiterating his...</p>\n\n<a href=\"https://finance.yahoo.com/news/bullard-says-faster-better-fed-125737661.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://finance.yahoo.com/news/bullard-says-faster-better-fed-125737661.html","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1188257239","content_text":"Federal Reserve Bank of St. Louis President James Bullard said U.S. monetary policy needs to be tightened quickly to stop putting upward pressure on inflation that is already too high, reiterating his call for interest rates to rise above 3% this year.“The Fed needs to move aggressively to keep inflation under control,” Bullard said in an interview Tuesday on Bloomberg Television with Michael McKee. “We need to get to neutral at least so we’re not putting upward pressure on inflation during this period when we have much higher inflation than we’re used to in the U.S.”The neutral rate is the level that neither spurs nor restrains inflation. Bullard estimates the rate at 2%, while the median of his colleagues puts it around 2.4%. Their latest quarterly projections -- released last week -- show they see rates rising to 1.9% by the end of this year and 2.8% by the end of 2023.The Federal Open Market Committee last week voted 8-1 to raise rates by a quarter percentage point for the first time since 2018, with Bullard dissenting in favor of a half-point hike and commencing the roll-off of the central bank’s nearly $9 trillion balance sheet. Chair Jerome Powell said Monday that he and his colleagues were prepared to raise rates by a half point at their May 3-4 meeting if needed as they try to contain the hottest inflation in 40 years.Asked how quickly the Fed should move, Bullard said “faster is better,” adding that “the 1994 tightening cycle or removal of accommodation cycle is probably the best analogy here.”From 1994 to early 1995, the Fed under Alan Greenspan raised rates from 3% to 6% and achieved a “soft landing” for the economy with inflation contained and continued strong growth, leading to a 10-year expansion that was the longest ever at that point. Powell, who has often praised Greenspan as a model, cited the tightening as an example of his goal for the economy on Monday.“I would probably get to a restrictive policy so we are putting some downward pressure,” Bullard said. “History tells us that the faster we moved to that situation, the better chance we will have of moving inflation back to target and getting a boom in the U.S. economy.”Bullard praised Powell’s speech Monday but said it was too early to conclude whether the committee would go along with a half-point move in May. He said such a move could be made without disrupting markets.“We came out of the pandemic and we got surprised by inflation,” Bullard said. “But now what you have to do is move the policy rate up discreetly a fair amount -- not to be too disruptive, but I think 50 basis points should definitely be in the mix.”","news_type":1},"isVote":1,"tweetType":1,"viewCount":411,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"CN","currentLanguage":"CN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":1,"xxTargetLangEnum":"ZH_CN"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/637126737"}
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