Fed’s Bullard says 75 basis point rate hike could be option, recession was premature
Federal Reserve Bank of St. Louis President James Bullard said the central bank needs to move quickly to raise interest rates to around 3.5% this year with multiple half-point hikes and that it shouldn’t rule out rate increases of 75 basis points.
“More than 50 basis points is not my base case at this point,” Bullard said. A known hawk, Bullard has been favoring faster and more aggressive rate hikes by the Fed.
Fed Chair Jerome Powell has said that a 50 basis-point increase is possible at the Fed’s May 3-4 meeting. Comments by colleagues since then have hardened expectations they’ll make that move, as officials extend a hawkish pivot to curb the hottest inflation since 1981.
The St. Louis Fed official said talk about recession was premature, with the Fed having only raised rates once at this point. He predicted that the U.S. economy would grow at a healthy rate in excess of its long-term trend both in 2022 and 2023, adding he expects unemployment to fall below 3%.
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“More than 50 basis points is not my base case at this point,” Bullard said. A known hawk, Bullard has been favoring faster and more aggressive rate hikes by the Fed.
Fed Chair Jerome Powell has said that a 50 basis-point increase is possible at the Fed’s May 3-4 meeting. Comments by colleagues since then have hardened expectations they’ll make that move, as officials extend a hawkish pivot to curb the hottest inflation since 1981.
The St. Louis Fed official said talk about recession was premature, with the Fed having only raised rates once at this point. He predicted that the U.S. economy would grow at a healthy rate in excess of its long-term trend both in 2022 and 2023, adding he expects unemployment to fall below 3%.
$SPDR S&P 500 ETF(SPY.US$ $S&P 500 Index(.SPX.US$ $Invesco QQQ Trust(QQQ.US$ $Nasdaq Composite Index(.IXIC.US$ $Dow Jones Industrial Average(.DJI.US$ $ProShares UltraPro Short QQQ ETF(SQQQ.US$ $Bank of America(BAC.US$ $JPMorgan(JPM.US$
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DwarfCo : 50 basis points is likely possible
FiveHundredCentsOP DwarfCo: 75 basis points is too radical
DwarfCo FiveHundredCentsOP: Yeah
iamiam : a recession is CERTAIN! fed failed, they can talk all they want nothing they do matters in the big picture now. They can also make up whatever numbers they want (3% unemployment how about -3% see making stuff up is fun, it doesnt change the fact employment signs are everywhere and we havent even reached pre covid employment. They just keep removing people from the records so they can report low unemployment, *it's all smoke and mirrors) They are spitting into a tidal wave. This is the new version of "transitory" they lie until they cant lie anymore to prevent panic.
Revelation 6 : In view of the Feds underperforming results of the past and the reactive posture they do so lovingly embrace, I think they will stick with a half point raise and continue with their “banks first” attitude. Some people have the misconception that the Feds job is to help the people by maintaining a strong financial environment. This is not true. They only do this to help them do their primary job, make themselves and every bank that’s part of the Federal Reserve System as much money as possible. Raising interest rates puts the squeeze on those beautiful earnings reports by making harder for you and I to barrow money. And banks love to loan money and hand out credit cards. Almost every day I get credit card junk mail delivered to my house saying how qualified I’m am to pay 18%-24% interest. That’s just a hair under loan sharking so it’s legal. So you can see, a half a point raise is going to cramp their style. Three quarters of a point would put their underwear in a bind. You and I pay for inflation. When we are paying inflated prices, we are not taking loans as much as we have less cash. And as I sure you can understand, the bankers losing money to inflation is unacceptable. That’s when something has to be done. So we only benefit as a secondary to the banks being the primary objective. Banks first, people second.We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America."
FiveHundredCentsOP iamiam:
FiveHundredCentsOP Revelation 6:
FiveHundredCentsOP Robert Martin6: