Categories: General Market Commentary
Topics: General Market Commentary

Fed’s forecast of gradual rate hikes is damaging its credibility and the economy, Bullard says

Fed’s forecast of gradual rate hikes is damaging its credibility and the economy, Bullard says

By Greg Robb

The Federal Reserve’s forecast of gradual rate hikes is damaging the economy and the central bank’s credibility, said St. Louis Fed President James Bullard on Friday.

In an interview on CNBC, Bullard stuck to his forecast of one rate hike over the next two-and-a-half years.

Bullard, who is a voting member on the Fed’s policy committee this year, said he was “agnostic” about exactly when the Fed should take that one step but did not seem eager to move at the September meeting.

Bullard said he thought it would be best to raise interest rates after there had been some “good news about the economy.” While there has been two good jobs reports, “year-over-year GDP growth rate is very low,” he noted.

To continue reading please click link http://www.marketwatch.com/story/feds-forecast-of-gradual-rate-hikes-is-damaging-its-credibility-and-the-economy-bullard-says-2016-08-26