St. Louis Federal Reserve President James Bullard is concerned about the mismatch between the market’s and the central bank’s expectations for the first interest-rate increase, warning it could end with a “violent” reaction in the financial market.
Speaking to reporters after a panel discussion at CityWeek in London on Tuesday, Bullard, one of the Fed’s most hawkish members, stressed that the central bank’s zero-rate interest policy is no longer appropriate and that a rate hike this summer wouldn’t strangle the U.S. economic recovery.
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