WASHINGTON (Reuters) – Four strong inflation reports in a row, from October through January, warrant a faster pace of Federal Reserve rate increases, St. Louis Fed president James Bullard said on Monday, restating his call for a full percentage point of rate hikes by July 1.
“The last four forecasts taken in tandem have indicated inflation is broadening and possibly accelerating in the U.S., so I shaded up my position,” Bullard said on CNBC.
His call last week for a half a percentage point hike at the Fed’s March meeting contributed to a fast market repricing after a stronger than expected report on inflation in January. Bullard however said Monday he would defer to Fed chair Jerome Powell about the timing of upcoming moves.
(Reporting by Howard Schneider; Editing by Chizu Nomiyama)
