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Abstract:The U.S. central bank ought to raise interest rates to 3.5% this year to get high inflation more quickly under control.
St. Louis Federal Reserve Bank President James Bullard on Friday reiterated his view that the U.S. central bank ought to raise interest rates to 3.5% this year to get high inflation more quickly under control.
“The more we can frontload and the more we can get inflation and inflation expectations under control the better off we will be,” Bullard said in an interview with Fox Business Network. “And in the out years, '23 and '24, we could be lowering the policy rate because we've got inflation under control.”
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The U.S. Bureau of Labor Statistics revised down the employment growth in the year ending in March by 818,000, an average monthly decrease of about 68,000, the largest downward revision since 2009. The substantial downward revision of employment data re-emphasized the severity and necessity of the U.S. employment problem, paving the way for a rate hike in September. Bearish for the U.S. dollar.
Fed Governor Bowman: There are upside risks to inflation, the labor market continues to strengthen, and a cautious attitude will be maintained at the September meeting. Boston Fed President Collins: If the data is as expected, it would be appropriate to start easing policy "soon". Inflationary pressure will slow down the pace of U.S. interest rate cuts, which will be bullish for the dollar.
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