St. Louis Fed President James Bullard told CNBC, “Our risk now is inflation doesn’t come down and reaccelerates and then what do we do.
“We are going to have to react, and if inflation doesn’t start to come down, you know, you risk this replay of the 1970s where you had 15 years and you’re trying to battle the drag, and you don’t want to get into that.
“Let’s be sharp now, let’s get inflation under control in 2023 and it’s a good time to fight inflation because the labor market is still strong,” He added.
Bullard reiterated his view that Federal funds rate at 5.25-5.50% rate would be adequate for the task.
