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    James Bullard expects to raise rates twice next year

    President of the Federal Reserve Bank of St. Louis James Bullard The US central bank has told CNBC that it expects to raise benchmark rates twice in 2022 after the end of its bond purchase program.

    Bullard added a warning that his point of view is based on current economic data and his forecasts may change over time.

    “What we can do is assess the situation next spring and see what’s happening now. At that point, we can make a decision to raise the policy rate,” Bullard said at the UBS European Parliament on Tuesday. He told CNBC’s Julian Natatelbaum in an interview recorded at. ..

    “There are actually two rate hikes in 2022 based on where we think we are today … this could actually change in either direction by the beginning of next year. There is sex. “

    Bullard, known to be more hawkish than other bank officials, Shows some anxiety At the level of inflation spikes. That’s right US wholesale prices rose 8.6% from October a year ago, according to new data on Tuesday., Their best annual pace in records dating back almost 11 years.

    Central banks usually pushed interest rates up to curb inflation, and the Fed began normalizing post-recession policies. Coronavirus pandemic.. Last week, it said bond purchases would begin to decline “late this month,” admitting that price increases were faster and more sustained than central banks expected.

    The Federal Reserve voted not to raise interest rates from near-zero anchors and warned against expecting an imminent rate hike. Under the current schedule, bond purchase cuts will end around July next year. Authorities say they do not expect to start raising rates until the taper is over, and forecasts released in September suggest that there will be at most one rate hike next year.

    Bullard is not a voting member of the Fed’s decision-making committee in 2021, but will vote in 2022.

    — CNBC’s Jeff Cox and Thomas Franck contributed to this article.

    James Bullard expects to raise rates twice next year

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    The post James Bullard expects to raise rates twice next year appeared first on Eminetra.

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