Hold off on further rate hikes until inflation moves: Fed’s Bullard

Reuters/Howard Schneider/06-23-17

The Federal Reserve should wait on any further rate increases until it is clear inflation is reliably heading to the Fed’s 2 percent target, St. Louis Fed President James Bullard said on Friday, highlighting the central bank’s struggle over how to weigh a recent slip in the rate of price increases.

“Recent inflation data have surprised to the downside and call into question the idea that U.S. inflation is reliably returning toward target,” Bullard said at an Illinois Bankers Association conference. “The Fed can wait and see how the economy develops before making any further adjustments to the policy rate.”

PG View: Kashkari apparently is not alone: Too bad Bullard is a non-voter.

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