St. Louis Federal Reserve President James Bullard cautioned Thursday that without central bank action on interest rates, inflation could become an even more serious problem. “We’re at more risk now than we’ve been in a generation that this could get out of control,” he said during a panel talk at Columbia University. “One scenario would be now you get a new surprise that hits us that we can’t anticipate right now, but we would have even more inflation. That’s the kind of situation that we want to … make sure it doesn’t occur.” Bullard has made news lately with his calls for aggressive Fed action. He has advocated for a full percentage point of rate increases by July in an effort to stem price surges that are running at the fastest pace in 40 years. In his remarks Thursday, he repeated his assertion that the Fed should “front-load” rate hikes as way to get ahead of inflation running at a 7.5% pace over the past year.
Source: CNBC – Bonds
