Fed’s Bullard: Rate hike this week was “a good next step”
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St. Louis Federal Reserve President James Bullard supported the 25 basis point rate hike that the Fed took this week, calling it “a good next step.” He stated that there is a significant amount of inflation in the economy.
In terms of the economic outlook, Bullard’s base case is not a recession, but rather slow growth and declining inflation. He also noted that the labor market remains “very tight” and will take time to cool.
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