Bullard Discusses the Fed Funds Rate and Inflation on CNBC
August 25, 2022
St. Louis Fed President James Bullard spoke about the timing of fed funds rate increases and getting inflation moving in the right direction. He spoke during a CNBC interview at the Jackson Hole Economic Symposium in Wyoming.
Bullard said he liked “front-loading,” or getting rate increases in earlier. His target is 3.75% to 4% by the end of the year, he reiterated.
“We’ve got inflation right now. We’ve got a strong labor market right now,” Bullard said. “It seems like a good time to get to the right neighborhood for the (fed) funds rate.”
Front-loading shows “you’re serious about inflation fighting,” Bullard said. “And you want to get up to the level that will put downward pressure on inflation.”
Bullard also said he believes inflation will be more persistent than what many on Wall Street expect. In addition, he spoke about the strong labor market and reaching the Fed’s 2% inflation target.