(Reuters) – St. Louis Federal Reserve Bank President James Bullard said on Thursday he expects high inflation to be more persistent than many had expected and that current interest rates are not high enough to start curbing price pressures.
In an interview with CNBC in Jackson, Wyoming, Bullard reiterated his hope that the Fed’s benchmark rate will climb from the current 2 range. 25% to 2.00% to 3.00% and 4.00% at the end of the year, this “upfront loading” of rate hikes appeals to him because “you show that you’re serious about fighting inflation.”
“The baseline may be that inflation will be more persistent than many Wall Street expects, which will be higher for a longer period of time, which is an undervalued risk in today’s market,” Bullard said.
