Federal Reserve Bank of St. Louis President James Bullard said he favored continued interest-rate hikes to counter persistent inflation, while recession fears are overblown. “Wall Street’s very engaged in the idea there’s going to be a recession in six months or something, but that isn’t really the way you would read an expansion like this,” Bullard told Reuters in an interview published Tuesday. Fed policymakers have penciled in one additional quarter-point hike this year, lifting their benchmark rate to 5.1% according to their median forecast in March. Investors see that move happening at their May 2-3 meeting. Bullard, who doesn’t vote on rates this year, was cited by Reuters as supporting pushing rates 50 basis points higher than the median estimate, to a range of 5.5% to 5.75%. That’s in line with the view that Bullard laid out on March 24, when he disclosed that he had raised his forecast for where rates would peak.
Source: The Bond Buyer
