Bullard Warns of Coming Interest Rate Hikes
Last week James Bullard, President of the St. Louis Federal Reserve, said that a raise in interest rates may be looming over the coming months. He opinioned that labor markets have shown improvement since December. “As it turns out, the decision to pause seems to have put more weight on the global and U.S. growth downgrade,” he said.
The Chief Executive Officer and 12th president of the Federal Reserve Bank of St. Louis has been in office since 2008 and is in the middle of a term that dates back to March 1, 2011. He and the other 17 policy makers are suggesting two rate hikes before the end of the year.
“The relatively minor downgrades suggest that the next rate increase may not be far off provided that the economy evolves as expected, “said Bullard, who is considered one of the most influential economists in the world. He earned his Ph. D. in economics from Indiana University in 1990.
Keys ingredients for a rate increase over the next coming months include a greater rebound in market-based inflation measures and the overseas economies showing signs of improvement.