Bullard Discusses Financial Stress, Rate Increases and Inflation on Bloomberg TV

April 3, 2023

During an appearance on Bloomberg TV, St. Louis Fed President Jim Bullard discussed financial stress, the federal funds rate and inflation.

On banking sector problems, Bullard said the reaction was swift and appropriate. He said he projected an 80% probability that the financial stress within the sector will decline.

“You’ve got the macroprudential tools for financial stress, and you’ve got monetary policy to fight inflation. We can do both as long as financial stress doesn’t morph into something much larger,” he said.

To bring down inflation, Bullard said the median Federal Open Market Committee projection shows that the federal funds rate will need to reach a little over 5%, although his own estimate is “a little higher than that.”

Bullard also discussed oil prices, labor markets and market expectations for future rate increases.

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