St. Louis Fed president James Bullard reiterated that “we have a good plan for now”, in raising interest rate by 50bps at the next couple of meetings. He hoped that could bring inflation down with “the least amount of disruption we can get.”
Bullard also said growth in range of 2.5-3.0% is ” “fast compared to the long run potential rate of growth” of the economy, which may be just below 2%. Also, “labor markets are super strong…Household consumption is expected to hold through this year.”.
People “want to put the pandemic behind them and they have lots of plans about spending,” Bullard added.
