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Fed’s Bullard Eyes Three Rate Rises This Year, Says Fed Must Defend Inflation Credibility
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Federal Reserve Bank of St. Louis President James Bullard said the U.S. central bank may need to raise its short-term interest rate target as soon as its March meeting, and follow that action in fairly short order by allowing its massive balance sheet to shrink.
Mr. Bullard, who spoke with reporters after a speech Thursday, said such actions are likely needed to help restrain the surge in inflation. With price pressures at current levels, Mr. Bullard said the Federal Reserve’s credibility as an institution that keeps inflation...
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