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Fed's Bullard: Inflation Is 'Hanging up Too High,' Necessitating More Rate Hikes

Moomoo 24/7 ·  May 22, 2023 08:59
  • Base case remains relatively slow growth for the rest of the year and into 2024

  • Recession arguments are overstated

  • The September median of the Fed funds target of 5.11% (dot plot) was based on slow growth and inflation improvements that have not occurred

  • The Fed will have to go higher on policy rate perhaps 50 basis points more hiking this year (the current rate is 5.25%)

  • Wants to fight inflation while the labor market is strong

  • Companies still scrambling for workers. Job growth above trend

  • Core measures of inflation have not changed much in recent months

  • If inflation is not controlled, federal have to do a lot more

  • The Fed should err on the side of doing more

Bullard's comments are once again more hawkish

8:46 AM ET: The stocks in premarket have dipped a bit but remains positive with the Dow up 28 points. The NASDAQ is up 4.5 points while the S&P is up 3.5 points.

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