St Louis Fed President James Bullard said yesterday’s inflation report “shows continued inflationary pressure in the US” and is “concerning for me and for the Fed.” He added, “you have got the highest inflation in 40 years and I think we are going to have to be far more nimble and far more reactive to data.”
“I’d like to see 100 basis points in the bag by July 1,” Bullard added. “I was already more hawkish but I have pulled up dramatically what I think the committee should do.”
However, San Francisco Fed President Mary Daly said a half-point rate hike “is not my preference. “”Markets have already priced in the withdrawal of accommodation, and that is them hearing what the Fed is clearly communicating.”
Richmond Fed President Thomas Barkin said “I’m open to it conceptually”, regarding a half point hike. “Do I think there’s a screaming need to do it right now? I’d have to be convinced of that,” he added.
