Federal Reserve Bank of St. Louis President James Bullard:

  • won't emphasize single inflation report too much but inflation is more persistent than many have thought
  • 50bps hikes at coming meetings "a good benchmark for now"
  • feel goal should be about 3.5% on fed funds rate by end of year
  • some of April's inflation number is "transitory," but "a big chunk" is likely persistent and will need a policy response
  • "base case" does not include a three quarter point rate increase
  • April inflation was "hot" but not far from what was expected

more to come

Bullard Bull