Feds Bullard: Higher rates are insurance against inflation. Leaning toward a June hike. | Forexlive

St. Louis Fed Pres. James Bullard in a Financial Times interview is leaning toward a hike in June:

Bullard is more of a hawk but has been lightning up of late. These comments are back toward the hawk. Earlier today Fed’s Logan said that at the moment, she would support a hike in June (contingent on the data).

The calming of the banking crisis may have policymakers leaning more toward inflation concerns versus the impact of higher rates and banking concerns. Also, as stocks heat up, perhaps Fed officials are also tilting more toward the risks of higher stock gains fueling more spending and higher inflation.

The chance of no change in policy at the June meeting has increased to around 30% from 25% yesterday.

US stocks have come off their high levels:

  • Dow Industrial Average is down -150 points or -0.45% at 33270.29. The high price reached 33492.48
  • S&P index is up 6.4 points or 0.15% at 4165.20. It’s high price reached 4186.20
  • NASDAQ index is up 93 points or 0.78% at 12598.56. It reached a high of 12664.11

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *