Fed's Bullard says rate hikes have had 'only limited effects' on inflation so far
St. Louis Federal Reserve President James Bullard said Thursday the central bank still has a lot of work to do before it brings inflation under control. A voting member on the rate-setting Federal Open Market Committee, Bullard delivered remarks centered on a rules-based approach to policymaking. Using standards set by Stanford economics professor John Taylor, Bullard insisted that the moves the Fed has made so far are insufficient. Even using assumptions he characterized as "generous" regarding the progress the Fed has made so far in its inflation fight, he noted in a series of slides that "the policy rate is not yet in a zone that may be considered sufficiently restrictive." "To attain a sufficiently restrictive level, the policy rate will need to be increased further," he added in the presentation.cnbc.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
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.
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.
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.
Dow drops more than 400 points after Trump tweets on China, Fed
The stock index fell more than 400 points, or about 1.6%, after Trump tweeted he "will be responding to China's tariffs this afternoon." Prior to the market open, China announced new retaliatory tariffs that will impact $75 billion worth of US goods and range from 5% to 10%. The US dollar, measured by the ICE U.S. Dollar Index, dropped 0.4%, and the yield on the 10-year US Treasury rate fell to 1.535%. Trump, who has long called on the Fed to cut interest rates more aggressively, tweeted "as usual, the Fed did NOTHING." Bullard spoke out in favor of interest rate cuts on CNBC given the recent inversion of the Treasury yield curve.
Fed dissenters say economy didn't need rate cuts
Chip Somodevilla/Getty Images(CNN) - Two regional Federal Reserve presidents publicly dissented Friday over this week's interest rate cuts, issuing separate statements arguing that economic conditions didn't warrant easing. "I do not see a clear and compelling case for additional monetary accommodation at this time," said Boston Fed President Eric Rosengren in a statement. "Incoming economic data and the outlook for economic activity over the medium term warranted no change in the policy rate," Kansas City Fed President Esther George said in her statement, adding maintaining interest rates would have been "appropriate." The Fed has left the door open for further rate cuts, while also suggesting that it has not entered an extended period of lowering rates. Members of the Federal Open Market Committee, comprised of the seven Board members and 12 regional Fed presidents, have dissented under both of Powell's predecessors.