It
is a "fantasy" to think the Fed can bring inflation down
sufficiently without raising interest rates, he said, adding
that the Fed needs to be more aggressive in its efforts to root
out the highest inflation in four decades.
"We have to put downward pressure on the component of inflation
that we think is persistent," the paper quoted him as saying,
making a call for rates to rise to a level that curtails growth.
"This report just underscores the urgency that the Fed is behind
the curve and needs to get moving," Bullard added, referring to
new inflation data showing that U.S. monthly consumer prices in
March increased by the most in 16-1/2 years.
Officials of the St. Louis Fed did not immediately respond to a
Reuters request for comment.
Last week, Bullard said the Fed was behind in its fight on
inflation and needed to raise the federal funds rate another 3
percentage points by year's end.
(Reporting by Juby Babu in Bengaluru; Editing by Clarence
Fernandez and Kim Coghill)
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