(Finance) – The further acceleration of US inflation in June, up 9.1% year on year at the fastest pace since November 1981, justifies a stronger-than-expected interest rate hike by the Fed . He said it James Bullardchairman of the Federal Reserve Bank of St. Louis, indicating how target by the end of the year an interval between 3.75% and 4%.
“Now I would see the moves in official rates upwards“Bullard said at an event organized by the European Economics & Financial Center in London. Previously, he argued that interest rates should end at around 3.5% by 2022. Bullard has not clarified whether he will support a rise in 75 basis points or 100 basis points at the meeting at the end of the month, although a few days ago he said in an interview that he is in favor of maintaining a rate hike of 75 basis points.
“The Fed must react, tracing a slightly more aggressive path in the second half of this year, “he said today.” Inflation is turning out to be broader and more persistent than we would have thought 60 or 90 days ago, “he added.