Fed shouldn't delay interest rates hike, despite financial turmoil, says Bullard
The Federal Reserve should not postpone a first interest rate hike, despite the recent market turmoil, a Federal Reserve policymaker said on Friday.
Speaking to Reuters, St Louis Fed president James Bullard said the Federal Open Market Committee is likely to hesitate over whether the first rate rise should come in September if the recent volatility in the global financial markets persists until then.
However, Bullard said he was in favour of a September rate hike, as the worldwide selloff had not been “so radical” to convince the US central bank to alter its plans over its policy rate.
The St Louis Fed president added the Fed should hike rate, then “hang out” at that level, if inflation fails to pick up.