Fed's Bullard: Solid US economy can handle rising rates
(AP Photo/Steve Helber, file) (Steve Helber)WASHINGTON — (AP) — Last week's jobs report points to a solid U.S. economy with little sign of a recession on the horizon and one that can withstand higher interest rates, St. Louis Federal Reserve president James Bullard said Monday. “Now we have lots of inflation, but the question is, can we get (inflation) back to 2% without disrupting the economy? Consumer prices rose 8.6% in May compared with a year ago, and a government inflation report Wednesday could show that they've ticked higher. The economy contracted in the January-March quarter and real-time data trackers, such as one maintained by the Atlanta Federal Reserve Bank, suggest it did so again in the April-June quarter. “It just doesn't seem like the U.S. economy has been in recession for the last two quarters,” Bullard said.wftv.com
St. Louis Fed's Bullard says the central bank should raise rates above 3% this year
St. Louis Fed President James Bullard said Friday he thinks the central bank should raise interest rates the equivalent of 12 times this year to convince the public it is serious about fighting inflation. As the lone dissenter at this week's Fed meeting, Bullard said in a statement that he would like to see the central bank's benchmark interest rate boosted above 3% from the near-0% level where it had stood. Following its two-day meeting, the Federal Open Market Committee on Wednesday said it would raise overnight rates for banks 0.25 percentage points. This is breaking news. Please check back here for updates.cnbc.com
Fed officials agree on a March rate hike but little else
Esther George, president of the Kansas City Fed, expressed support for a more “gradual” approach. And Mary Daly of the San Francisco Fed declined to commit herself to more than a modest rate hike next month. Last week's report on consumer inflation prompted a sharp increase in expectations for rate increases by the Fed this year. And he stood by his call for a full percentage point increase in the Fed's key rate by July 1. Daly expressed support for a rate hike in March but stopped short of backing Barkin's call for ongoing increases.wftv.com
Bullard says the Fed needs to 'front-load' tightening because inflation is accelerating
St. Louis Federal Reserve President James Bullard made his case for a rapid move higher in interest rates, saying Monday that the central bank needs to react to accelerating inflation. "I do think we need to front-load more of our planned removal of accommodation than we would have previously. This is a lot of inflation," Bullard told CNBC's Steve Liesman during a live "Squawk Box" interview. Those comments came after Bullard rattled markets last week by saying he thinks the Fed should raise its benchmark short-term borrowing rate a full percentage point by July. "I think my position is a good one, and I'll try to convince my colleagues that it's a good one," Bullard told CNBC.cnbc.com
Fed likely to signal a coming pullback in economic support
The Federal Reserve is expected this week to send its clearest signal yet that it will start reining in its ultra-low-interest rate policies later this year, the first step toward unwinding the extraordinary support it’s given the economy since the pandemic struck 18 months ago.
Bullard: Robust job growth supports Fed tapering 'soon'
On Monday, Boston Federal Reserve Bank President Eric Rosengren told the AP the tapering should begin his fall. Bullard sketched an aggressive timeline for tapering, which he thinks should start soon and conclude as early as next spring. That would put the Fed in a position to potentially lift its short-term interest rate from nearly zero, if necessary, to keep inflation from worsening. Tell me a little more about your timetable for tapering bond purchases. The pace of tapering could be fast enough to end the purchases by the end of the first quarter (in 2022).wftv.com
Rosengren: Fed should begin slowing stimulus efforts by fall
The president of the Federal Reserve Bank of Boston added his voice to a growing number of people, inside and outside the Fed, who say the central bank should soon begin to dial back its extraordinary aid for an economy that is strongly recovering from the pandemic recession.
Fed's Powell says high inflation temporary, will 'abate'
Federal Reserve FILE - Federal Reserve Chairman Jerome Powell, right, testifies before the Senate Banking Committee on Capitol Hill in Washington, Tuesday, Dec. 1, 2020. The economy is growing at a healthy clip, and that has accelerated inflation, Federal Reserve Chair Jerome Powell says in written testimony to be delivered Tuesday, June 22, 2021 at a congressional oversight hearing. (AP Photo/Susan Walsh, Pool) (Susan Walsh)WASHINGTON — (AP) — Federal Reserve Chair Jerome Powell said Tuesday that he expects recent price spikes will soon subside and reduce inflation to a sustainable level. “But we are making progress.”Some Fed officials are not completely convinced that inflation is temporary. On Monday, New York Federal Reserve Bank President John Williams, who also serves as vice chair of the Fed’s policymaking committee, said that he expects recent price spikes will prove temporary.wftv.com
Powell says economy growing rapidly, inflation up 'notably'
WASHINGTON — (AP) — The economy is growing at a healthy clip, and that has accelerated inflation, Federal Reserve Chair Jerome Powell says in written testimony to be delivered Tuesday at a congressional oversight hearing. “Inflation has increased notably in recent months,” Powell said in the prepared remarks. “As these transitory supply effects abate, inflation is expected to drop back toward our longer-run goal,” Powell said, referring to the 2% inflation rate the Fed typically targets. Some Fed officials are also making it clear that they are ready to lift interest rates even earlier. Higher interest rates generally make stocks less attractive to investors and make bonds a more appealing investment.wftv.com
Stocks slump again, S&P 500 heading for worst loss in month
The S&P 500 was 0.9% lower in afternoon trading, and the losses were widespread. More than four out of five stocks in the index were falling, and it's on pace for its worst day in a month. The S&P 500 is less than 2% below its all-time high set on Monday, and the Dow is within 4% of its record set last month. Banks are taking a hit from the shrinking gap between shorter- and longer-term interest rates, which helped send financial stocks in the S&P 500 down 2.2% on Friday. The rate pressure helped send JPMorgan Chase down 2.6%, and it was one of the heaviest weights on the S&P 500.wftv.com
US stocks lower after Fed official sees rate hikes in 2022
Stocks are opening broadly lower on Wall Street, putting the S&P 500 index on track for its first losing week in the last four. The benchmark index gave up 0.8% in the early going Friday, June 18 with banks and technology companies leading the way lower. The S&P 500 is on pace to end the week down 1.6% while the Dow is down more than 3%. St. Louis Federal Reserve President James Bullard said on business news channel CNBC that he expects the first interest rate increase the Fed could make could come as soon as 2022. That's faster than what the Federal Reserve said on Wednesday, when a forecast by policymakers put the consensus estimate of interest rate hikes in 2023.wftv.com
Bitcoin poses no threat to the dollar as the world's currency leader, Fed's Bullard says
St. Louis Federal Reserve President James Bullard told CNBC on Tuesday he believes increasing interest in bitcoin does not pose a serious threat to the U.S. dollar as the world's reserve currency. In addition, bitcoin and other cryptocurrencies also present themselves as a way to buy goods and services like actual money. "You don't want to go to a nonuniform currency where you're walking into Starbucks and maybe you'll pay with ethereum, maybe you'll pay with ripple, maybe you'll pay with bitcoin, maybe you'll pay with a dollar. The electric vehicle maker's action was viewed by some as another major step toward broad acceptance of bitcoin, which is the world's largest digital currency by market value. When considering whether cryptocurrencies present a threat to the dollar, Bullard stressed there's nothing new about competition.cnbc.com
Fed's Bullard doesn't see asset bubble and doubts policy will tighten soon
St. Louis Federal Reserve president James Bullard said Tuesday that he doesn't see a bubble in asset prices and doubts the central bank needs to start tightening policy anytime soon. But Bullard told CNBC that there aren't clear signs of excesses though he conceded that stocks are "highly valued on the whole." "They've got great technology, they've got great revenues, business models [where] the sky is the limit. But asked if he thinks the Fed should start tapering the pace of its asset purchases, Bullard said, "Not really. Bullard added that he's not concerned about the surge in bitcoin pricing – past $50,000 Tuesday morning – and said it is unlikely to impact Fed policy.cnbc.com
Stocks close slightly lower as investors await details of Biden stimulus plan
Stocks fell slightly on Thursday, with tech shares declining, as traders awaited the unveiling of a potentially big economic stimulus package. The Nasdaq Composite dipped 0.1% to 13,112.64 after hitting an all-time high earlier in the session. The New York Times, meanwhile, said Biden is expected to outline a $1.9 trillion spending plan. Shares of Johnson & Johnson climbed 1.8%. Wednesday's slight gains for the S&P 500 and Nasdaq came after Intel rallied nearly 7% to lead tech stocks higher.cnbc.com
With rates on the rise, investors fear any signs of inflation
The rapid move higher in bond yields since the start of the year has been accompanied by rising inflation expectations. The 10-year breakeven, a bond market instrument for inflation expectations, was at 2.07% Tuesday, suggesting investors expect inflation to average that level for the next 10 years. With the sharp move higher in interest rates, markets have been on the lookout for inflation creeping up. "I do think inflation is a real game changer should it occur. "I think inflation is the worst nightmare of inflated asset prices ... for high multiple stocks, inflation is not their friend," he said.cnbc.com
Senate confirms Christopher Waller to serve on Fed's board
WASHINGTON – The Senate on Thursday narrowly confirmed the nomination of Christopher Waller for the Federal Reserve's Board of Governors, placing another of President Donald Trump's picks on the Fed's influential board after a string of high-profile rejections. Waller had won some Democratic votes when the Senate Banking Committee approved his nomination in July. And some worried that Waller would agree with the Fed's recent moves to loosen regulations on large banks. With Waller's confirmation by the Senate, four of the Fed's six governors have now been chosen by Trump. Trump’s two previous picks for the Fed's board, Stephen Moore and Herman Cain, ran into so much opposition that they withdrew from consideration before their nominations came before the Senate.
Fed's Bullard says 'biggest growth quarter of all time' will lift inflation
St. Louis Federal Reserve President James Bullard offered an optimistic look on the U.S. economy, with "off the charts" growth that will help lift inflation. Bullard also said he sees the unemployment rate falling to 6.5% by the end of the year, an estimate well below the median projection of 7.6% that his Fed colleagues released earlier this week. "This is the biggest growth quarter of all time in the U.S.," he said Friday during a moderated discussion with the Boeing Center for Supply Chain Innovation. That growth, Bullard added, will help the Fed meet its 2% inflation mandate. Under the initiative, the Fed has pledged not to raise rates until inflation has surpassed 2%, even if unemployment slides to a level normally associated with pricing pressures.cnbc.com