• Fed's Bullard: Doesn't make too much difference to do 100 bps or 75 bps in July

Market news

15 July 2022

Fed's Bullard: Doesn't make too much difference to do 100 bps or 75 bps in July

St. Louis Federal Reserve Bank President James Bullard argued on Friday that it wouldn't make too much of a difference to do a 100 basis points (bps) or a 75 bps rate hike at the next meeting, as reported by Reuters.

Additional takeaways

"Inflation can come down relatively quickly down to 2% over the next 18 months if Fed plays its cards right."

"Base case is still that we can get a relatively soft landing."

"I am an advocate of frontloading rate hikes."

"Fed has been trying to not do too much at once."

"Our commitment to getting to 2% inflation is unconditional."

Market reaction

The US Dollar Index extended its recovery on these comments and was last seen losing 0.25% on a daily basis.

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