Fed could cut rates in 2023, 2024 once inflation under control -Bullard | Financial Post
St. Louis Federal Reserve Bank President James Bullard on Friday reiterated his view that the U.S. central bank ought to raise interest rates to 3.5% this year to get high inflation more quickly under control.
“The more we can frontload and the more we can get inflation and inflation expectations under control the better off we will be,” Bullard said in an interview with Fox Business Network. “And in the out years, ’23 and ’24, we could be lowering the policy rate because we’ve got inflation under control.”
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Thoughts on Bullard's latest statement? Combined with his earlier statements this week that he feels the current schedule of 0.5 raises should be sufficient this year, I feel this is bullish overall. At least this demonstrates that the fed is working to get back to rate cuts in the near future, and hopefully we aren't going to see interest rates balloon over many years like in the past.
Obviously the big question is whether inflation is going to get out of control, but IMHO it's only a matter of time before the war in Ukraine and the lockdowns in China end, both of which should help address supply issues and lower inflation.
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