Paul Volcker James Bullard New York city New York county St. Louis Fighting Paul Volcker James Bullard New York city New York county St. Louis

Fed's James Bullard expresses confidence that the economy can achieve a 'soft landing'

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cnbc.com

St. Louis Federal Reserve President James Bullard said Tuesday that he still thinks the economy can avoid a recession, even though he expects the central bank will need to keep hiking rates to control inflation. «I think that inflation has come in hotter than what I would have expected during the second quarter,» the central bank official said during a speech in New York. «Now that that has happened, I think we're going to have to go a little bit higher than what I said before.» The fed funds rate, which is the central bank's benchmark, likely will have to go to 3.75%-4% by the end of 2022, Bullard estimated.

It currently sits at 2.25%-2.5% following four rate hikes this year. The rate sets the level banks charge each other for overnight lending but feeds through to many adjustable-rate consumer debt instruments.

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