Fed’s Bullard: Other central banks will have to react to Fed’s intentions
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St. Louis Federal Reserve Bank President James Bullard said on Thursday that the Federal Reserve is having to raise rates pretty rapidly to get to a minimally appropriate level to tackle inflation, as reported by Reuters.
“Fed always watches global market developments but is focused on US market and fundamentals.”
“Fed determined to get to the right level of policy rate.”
“Other central banks will have to react to Fed’s intentions.”
“Disinflation will come more through inflation expectations than demand adjustment.”
“Inflation will start to come down in 2023 but how fast is uncertain.”
“It is possible US will get a recession as Fed brings inflation down, but it is not my base case.”
“If US unemployment rises to 4.5%, that would still be a healthy labor market.”
The greenback stays on the backfoot after these comments and the US Dollar Index was last seen losing 0.27% on the day at 112.40.
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