St. Louis Fed President James Bullard said Fed should “tack in a more hawkish direction” over the next few meetings. He warned, “if inflation happens to go away we are in great shape for that. If inflation doesn’t go away as quickly as many are currently anticipating it is going to be up to (Fed) to keep inflation under control.”
He added that if Fed increase the pace of tapering to USD 30B per month, that would open the door for a rate hike at the end of Q1. He has penciled in two hikes for next year and agreed with markets’ assessment. Also, he’s open to the idea of raising interest rate before tapering completes.
