James Bullard, Interview: Bloomberg TV
“We want to get to neutral expeditiously … we should try to get above neutral as early as the 3rd quarter and try to put further downward pressure on inflation at that point.”
“More than 50 basis points is not base case at this point, I would point out that the 1994 cycle, where we raised the policy rate 300 basis points in a year – first of all, that one was successful – and did setup the U.S. economy for a stellar second half of the 1990s, one of the best periods in U.S. macroeconomic history, so it was successful – and in that cycle, there was a 75 basis point increase at one point, so I wouldn’t rule it out, but it’s not my base case here, and I would stress, as I did in my opening statement that the market pricing is doing some of the work for the Fed. for it. What really need to do is just ratify the promised increases in the funds rate that we already got out there that are partially priced into the market.”