In an interview on Bloomberg TV, the president of the St. Louis Fed and a member of the FOMC with the right to vote in 2022, James Bullard, He said the underlying PCE is “quite high” and that the Fed should become more aggressive over the course of upcoming policy meetings. He said that if the bank accelerated the pace of its QE reduction to $ 30 billion per month, this could open the door for a rate hike in the first quarter of 2022 and that it was in line with USD market prices. STIR for two increases in 2022.
Bullard went on to say that becoming more aggressive now could be advantageous as it could smooth the normalization process and cause the Fed to have to do less at a later date. However, Bullard admitted that the rate increases would ultimately be a committee decision and “it’s a big committee.”
When asked for his thoughts on the upcoming Fed Chairman nomination, Bullard said that whether US President Joe Biden chooses to rename current Fed Chairman Jerome Powell or nominate the Board member Fed Governor Lael Brainard, there will be a lot of continuity.
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