St. Louis Federal Reserve Bank President James Bullard isn’t a proponent of further interest rates hikes, Reuters reports.
Last week, Bullard said rates may already have reached a "neutral" level that is no longer stimulating the economy and going further at this point “risks nipping off business investment that might follow the recent corporate tax cut, upset healthy conditions in the labor market, and leave inflation expectations short of the central bank's goal,” Reuters writes.
Bullard has made a series of arguments in recent years for halting further rate increases until it is clear that inflation, growth and market interest rates have shifted to a higher, more dynamic "regime."
His colleagues have proceeded to gradually raise rates nonetheless, and currently expect to do so two more times this year. Many economists and analysts argue they will likely add an additional quarter-point increase this year as the impact of burgeoning federal deficits and a recent tax cut are felt in an economy with low unemployment and inflation edging up towards the Fed's two percent target.Read More