The president of the Federal Reserve of St. Louis, James Bullard, claimed in an interview Tuesday that robust expansion will continue through 2022 and it will take time for labor supply problems to be fixed. He stated that a more aggressive Fed would guarantee a longer expansion.
Bulllard sees two interest rate hikes in 2022, “which requires the balance to begin to decline as soon as the bond purchases end.” He estimates that the normalization of central bank policies could be faster than that which took place after the 2007-2009 crisis.
On inflation, the official said that the Fed shows its commitment to a higher inflation framework, “but now it runs the risk of exceeding inflation that is too high for too long.” He estimates that inflation will remain at 2.8% until next year, at the higher end of recent projections.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
