Fed’s Bullard revises rate projection upward
Policy-maker says bank stress likely to fade but inflation fight continues
There is an 80% chance banking stress abates, James Bullard, president of the Federal Reserve Bank of St Louis, estimated in a press call on March 24. If stress does ease, the US Federal Reserve will need to raise interest rates further, he argued.
Bullard said he now expected the Fed’s rate increases to peak at around 5.6%, 25 basis points higher than he previously predicted. The target range for the federal funds rate is currently 4.75–5%.
Harald Uhlig, a professor of economics at the
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