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.Read more on cnbc.com