Bullard: Fed rate rise path may be 'overly aggressive'

Economy 5/19/2017, 5:14 PM
Bullard: Fed rate rise path may be 'overly aggressive'

Economic data for the United States published since the Federal Reserve's meeting in March has been relatively weak, indicating that the projected path for increasing interest rates may be "overly aggressive," President of St. Louis Fed James Bullard said on Friday.

The policymaker, who is not a voting member of the Federal Open Market Committee this year, noted that longer-term bond yields have fallen since March, while both inflation and inflation expectations have weakened. As a result, the central bank's projection of three interest rate hikes this year may be too aggressive relative to actual incoming data on the American economy.

However, Bullard, known for his centrist views on monetary policy, said he would probably not oppose another rate increase, and added that the impact of shrinking the Fed's $4.5 trillion balance sheet should be minimal.

TeleTrader Newsroom / IB