Fed’s Bullard: I hope U.S. economy repeats outcome of 1994’s soft landing
2022.06.20 21:56
FILE PHOTO: St. Louis Federal Reserve Bank President James Bullard speaks at a public lecture in Singapore October 8, 2018. REUTERS/Edgar Su/File Photo
(Reuters) – The U.S. Federal Reserve could raise interest rates swiftly this year and forge a “stellar” economy ahead if it can pull off a repeat of the central bank’s 1994 tightening cycle, St. Louis Fed President James Bullard said on Monday.
“That tightening episode caused some disruption that year,” Bullard said during an event held by the AXA-Barcelona School of Economics in Barcelona, Spain. “However, I have always felt that set up the U.S. economy for a stellar performance in the second half of the 1990s…I hope we can get something like that this time.”
Bullard has been a vocal backer of aggressive Fed action to tame stubbornly high inflation that is running at more than three times the U.S. central bank’s 2% goal.
“We are moving quickly, but moving from a low level and from the very accommodative monetary policy we put in place,” Bullard added.
