BOSTON, Aug 17 (IFR) – FRB St. Louis President Bullard (2016 FOMC voter, dovish) is sticking to a call he made in early July in which sees a need for only one rate hike between now and June 2016. While addressing a research conference in St. Louis on wealth and asset management, Bullard restated his position that the U.S. has remains in a low-growth, low-inflation “regime”, obviating the need for raising rates beyond 63 bps (i.e., one rate hike) for the “foreseeable future”, which could be as long as 2.5 years. Bullard admitted that there likely are upside risks associated with his projected policy path, but those risks have not yet shifted the U.S. economy to a new regime and therefore there is no reason to adjust administered rates. Bullard concluded, “If a regime switch does occur, the policy rate path would have to change appropriately-it remains data-dependent.”
Data from Reuters
