The President of the Federal Reserve of St. Louis, James Bullarddeclared on Monday that the Fed wants to fight inflation as long as the labor market remains strong, adding that the policy rate will have to rise this year, perhaps 50 basis points.
Other statements
“The base case remains relatively slow growth for the remainder of this year and through 2024, recession probabilities are overestimated.”
“The SEP median of 5.1% was based on slow growth and inflation improvements that have not occurred.”
“Companies continue to search for workers; job growth remains above trend.”
“Basic measures of inflation have not changed much in recent months.”
“If inflation goes unchecked, the Fed will have to do a lot more, it should err on the side of doing more.”
“Households continue to have liquidity and that will continue to support consumer spending.”
Market reaction
These comments did not cause a significant reaction in the Dollar Index, which is trading sideways at 103.15.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
