• Latest
  • Trending
  • All

Fed’s Jim Bullard sees first interest rate hike coming as soon as 2022

June 18, 2021 14:44
Dollar lacks upside momentum due to lower Treasury yields

USD treads water after plunge, markets steady ahead of the weekend

May 20, 2022 06:21
Investor sentiment looks neutral at the start of the week

Modest bounce after sell-off ahead of the weekend

May 20, 2022 04:51
Dollar lacks upside momentum due to lower Treasury yields

Major currencies struggle below key SMAs

May 19, 2022 06:02
Geopolitical tensions ease but risks persist

Global stock rout continues on growth fears

May 19, 2022 05:00
Dollar lacks upside momentum due to lower Treasury yields

Dollar regains ground after a three-day sell-off

May 18, 2022 06:09
Chinese data spooks investors, sentiment turns sour

Stock markets turn directionless after a bounce

May 18, 2022 05:08
Dollar lacks upside momentum due to lower Treasury yields

Currencies enjoy a bounce amid a weaker USD

May 17, 2022 06:51
Sentiment turns sour, dollar steadies ahead of the weekend

USD gives up gains as risk sentiment improves further

May 17, 2022 04:52
Dollar lacks upside momentum due to lower Treasury yields

Dollar off tops but resilient

May 16, 2022 05:44
Stocks mostly lower despite upbeat economic data

Markets failed to extend the bounce, back under pressure

May 16, 2022 04:38
Dollar lacks upside momentum due to lower Treasury yields

Dollar refrains from a deeper retreat

May 13, 2022 06:04
Dollar lacks upside momentum due to lower Treasury yields

The greenback seems unstoppable

May 12, 2022 06:34
  • Terms & Сonditions
  • Contact
Sunday, May 22, 2022
FWNews - pulse of the forex market
  • FUNDAMENTALS
    Investor sentiment looks neutral at the start of the week

    Modest bounce after sell-off ahead of the weekend

    Geopolitical tensions ease but risks persist

    Global stock rout continues on growth fears

    Chinese data spooks investors, sentiment turns sour

    Stock markets turn directionless after a bounce

    Sentiment turns sour, dollar steadies ahead of the weekend

    USD gives up gains as risk sentiment improves further

    Stocks mostly lower despite upbeat economic data

    Markets failed to extend the bounce, back under pressure

    Risk sentiment looks mixed, dollar retreats marginally

    Dollar at fresh highs while stock markets keep bleeding

    Stocks continue to give up gains ahead of US jobs data

    Stocks bounce ahead of US inflation report

    Investors stay nervous as tensions escalate

    Markets look for rebound after a major sell off

    Stock markets rebound on strong corporate earnings

    Recession worries keep markets on the defensive

  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage
No Result
View All Result
FWNews - pulse of the forex market
  • FUNDAMENTALS
    Investor sentiment looks neutral at the start of the week

    Modest bounce after sell-off ahead of the weekend

    Geopolitical tensions ease but risks persist

    Global stock rout continues on growth fears

    Chinese data spooks investors, sentiment turns sour

    Stock markets turn directionless after a bounce

    Sentiment turns sour, dollar steadies ahead of the weekend

    USD gives up gains as risk sentiment improves further

    Stocks mostly lower despite upbeat economic data

    Markets failed to extend the bounce, back under pressure

    Risk sentiment looks mixed, dollar retreats marginally

    Dollar at fresh highs while stock markets keep bleeding

    Stocks continue to give up gains ahead of US jobs data

    Stocks bounce ahead of US inflation report

    Investors stay nervous as tensions escalate

    Markets look for rebound after a major sell off

    Stock markets rebound on strong corporate earnings

    Recession worries keep markets on the defensive

  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage
No Result
View All Result
FWNews - pulse of the forex market
No Result
View All Result

Home » Fed’s Jim Bullard sees first interest rate hike coming as soon as 2022

Fed’s Jim Bullard sees first interest rate hike coming as soon as 2022

by FWNews
June 18, 2021 14:44
in News
0

St. Louis Federal Reserve President James Bullard told CNBC on Friday that he sees an initial interest rate increase happening in late-2022 as inflation picks up faster than previous forecasts had anticipated.

That estimate is even quicker than the outlook the broader Federal Open Market Committee released Wednesday that caused a hit to financial markets. The committee’s median outlook was for up to two hikes in 2023, after indicating in March that saw no increases on the horizon.

Bullard at several points described the Fed’s moves this week as “hawkish,” or in favor of tighter monetary policy than what has prevailed since the onset of the Covid-19 pandemic.

“We’re expecting a good year, a good reopening. But this is a bigger year than we were expecting, more inflation than we were expecting,” the central bank official said on “Squawk Box.” “I think it’s natural that we’ve tilted a little bit more hawkish here to contain inflationary pressures.”

The FOMC’s revised forecasts reflect that sentiment.

For 2021, the committee raised its expectations for core inflation as measured by the personal consumption expenditures price index to 3% from the March estimate of 2.2%. It also brought its median estimate for inflation including food and energy prices up to 3.4%, a full percentage point jump from the prior outlook.

Along with that, the committee hiked its outlook for GDP growth to 7% from 6.5%. As recently as December the committee had been looking for growth of just 4.2%.

“Overall, it’s very good news,” Bullard said of the economic trajectory during the reopening. “You love to have an economy growing as fast as this one, you love to have a labor market improving the way this one has improved.”

However, he cautioned that the growth is bringing faster-than-expected inflation, adding that “you could even see some upside risks” to price pressures that by some measures are running at their highest levels since the early 1980s.

That’s why he thinks it would be prudent to start raising interest rates as soon as next year. The Fed dropped its key overnight lending rate to near zero at the outset of the pandemic and has kept it there since.

Bullard said he sees inflation running at 3% this year and 2.5% in 2022 before drifting back down to the Fed’s 2% target.

“If that’s what you think is going to happen, then by the time you get to the end of 2022, you’d already have two years of two-and-a-half to 3% inflation,” he said. “To me, that would meet our new framework where we said we’re going to allow inflation to run above target for some time, and from there we could bring inflation down to 2% over the subsequent horizon.”

Bullard is not a voting member this year on the committee but will get a vote next year. Stock market futures briefly added to losses while the 10-year Treasury yield ticked higher as Bullard spoke.

The other dynamic of the Fed’s policy is its $120 billion minimum of asset purchases. Bullard said he thinks it will take several months of discussion before the central bank decides how to begin reducing that pace.

He also cautioned that with the economic dynamics uncertain ahead, that also will mean monetary policy will remain in flux.

“These are things far in the future in an environment where we’ve got a lot of volatility, so it’s not at all clear any of this will pan out the way anybody is talking about. So we’re going to have to go meeting by meeting to see what happens,” he said.

Become a smarter investor with CNBC Pro.
Get stock picks, analyst calls, exclusive interviews and access to CNBC TV.
Sign up to start a free trial today.

Share2Tweet1
ADVERTISEMENT
FWNews

FWNews

Track the pulse of the market

Related Posts

Dollar lacks upside momentum due to lower Treasury yields
Technical analysis

USD treads water after plunge, markets steady ahead of the weekend

May 20, 2022 06:21
11
Investor sentiment looks neutral at the start of the week
Fundamental analysis

Modest bounce after sell-off ahead of the weekend

May 20, 2022 04:51
11
Dollar lacks upside momentum due to lower Treasury yields
Technical analysis

Major currencies struggle below key SMAs

May 19, 2022 06:02
12
Geopolitical tensions ease but risks persist
Fundamental analysis

Global stock rout continues on growth fears

May 19, 2022 05:00
16
Dollar lacks upside momentum due to lower Treasury yields
Technical analysis

Dollar regains ground after a three-day sell-off

May 18, 2022 06:09
15
Chinese data spooks investors, sentiment turns sour
Fundamental analysis

Stock markets turn directionless after a bounce

May 18, 2022 05:08
15

Leave Your Opinion Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Fed holds rates steady near zero and indicates it will stay there for years

September 16, 2020 14:31
10
Pound corrects higher due to dollar weakness

Greenback under renewed selling pressure to start the week

December 14, 2020 08:02
11
Euro struggles below three-month highs, yen demand persists

Widespread dollar demand persists, the euro is yet to find a bottom

April 3, 2020 13:33
21

Ads

Shneider Electric

Most Popular

A slow start to the week in FX markets
Technical analysis

Dollar regains ground to start the week

January 25, 2021 07:25
118
A slow start to the week in FX markets
Technical analysis

Greenback advances modestly amid strong data

May 28, 2021 07:38
110
Kim Jong Un reportedly says his nuclear weapons guarantee there will be no more war
News

Kim Jong Un reportedly says his nuclear weapons guarantee there will be no more war

July 28, 2020 08:29
95
FWNews

Copyright © 2020 FWNews

  • Terms & Сonditions
  • Contact
No Result
View All Result
  • FUNDAMENTALS
  • TECHNICALS
  • Interest Rates
  • Economic calendar
  • Backstage

Copyright © 2020 FWNews