{"id":1424186,"date":"2022-04-07T15:15:07","date_gmt":"2022-04-07T19:15:07","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1424186"},"modified":"2022-04-07T15:15:10","modified_gmt":"2022-04-07T19:15:10","slug":"bullard-says-fed-should-get-target-up-to-3-5-this-year","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bullard-says-fed-should-get-target-up-to-3-5-this-year\/","title":{"rendered":"Bullard Says Fed Should Get Target Up to 3.5% This Year"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbullard-says-fed-should-get-target-up-to-3-5-this-year%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1424186&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><\/div>\n<p class=\"subheading\">Federal Reserve Bank of St. Louis President James Bullard said Thursday that he would like to see the central bank raise its target rate to 3.5 percent by the second half of this year.<\/p>\n<p>\u201cI do think we have to move forthrightly in order to get the policy rate up to the right level to deal with inflation that we\u2019ve got in front of us,\u201d\u00a0 Bullard said to reporters after\u00a0a presentation at the University of Missouri-Columbia.<\/p>\n<figure id=\"D-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"M-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"gmxrevmore\" class=\"H\"><\/figure>\n<p>Bullard dissented from the Federal Open Market Committee\u2019s decision last month to raise its target by a quarter of a percentage point. He would have preferred a half-a-point raise instead.<\/p>\n<p>Bullard described inflation as \u201cexceptionally high\u201dand said it is comparable to inflation in 1974 and 1983. Standard monetary policy rules would prescribe a much higher interest rate than the 0.25 to 0.50 the Fed is currently targeting.\u00a0 Viewed from this perspective, the Fed is far \u201cbehind the curve,\u201d Bullard said.<\/p>\n<p>\u201cHowever, all is not lost. Modern central banks are more credible than their 1970s counterparts and use forward guidance,\u201d he said. \u201cCredible forward guidance means market interest rates have increased substantially in advance of tangible Fed action. This provides another definition of \u2018behind the curve,\u2019 and the Fed is not as far behind based on this definition.\u201d<\/p>\n<figure id=\"M-ROS-B2\" class=\"a8d\"><\/figure>\n<p>Various Fed officials have voiced support for a half a point hike at the next meeting in early May. Minutes of the March meeting showed that members of the FOMC pulled back from supporting a rate hike of that size because of uncertainty around the economic impact of Russia\u2019s invasion of Ukraine.<\/p>\n<p>In his remarks to reporters, Bullard downplayed the risk of a recession.<\/p>\n<p>\u201cThe expansion is not \u2018old\u2019 and can continue for a long time,\u201d Bullard said. He also said that \u201clabor markets are robust and are likely to improve further in 2022.\u201d<\/p>\n<p>He forecast that the economy would grow by 2.8 percent this year and unemployment could fall below three percent. On Thursday, the Department Labor said there were only 166,000 new claims for unemployment benefits last week, the lowest level of claims since 1968, when the size of the labor force was much smaller than it is now.<\/p>\n<p>The yield curve, which inverted last week and raised fears that the economy might slump due to the Fed\u2019s campaign against inflation, steepened on Thursday. By midday, 10-year Treasuries were yielding 2.65 percent and two-year Treasuries were yielding 2.464 percent.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal Reserve Bank of St. Louis President James Bullard said Thursday that he would like to see the central bank raise its target rate to 3.5 percent by the second<\/p>\n","protected":false},"author":11,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1424186","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1424186","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1424186"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1424186\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1424186"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1424186"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1424186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}