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James Bullard says the Fed needs to validate the market’s rate hike view

St. Louis Federal Reserve Bank President James Bullard said markets have priced in multiple rate hikes by the central bank and it’s up to the Fed to meet investor expectations.

“The fact that market rates have moved above their pre-pandemic benchmarks while the policy rate has not can be seen as an example of the impact of credible forward guidance,” Mr Bullard said in material for presentation on Thursday. He was referring to statements from the central bank that said policymakers expect a series of aggressive rate hikes aimed at tackling the highest levels of inflation in 40 years.

James Bullard says the Fed needs to validate the market’s rate hike view

Source link James Bullard says the Fed needs to validate the market’s rate hike view

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