Fed’s Bullard Says 75 Basis-Point Hike Could Be Option If Needed

Federal Reserve Bank of St. Louis President James Bullard said the central bank needs to move quickly to raise interest rates to around 3.5% this year with multiple half-point hikes and that it shouldn’t rule out rate increases of 75 basis points.

“More than 50 basis points is not my base case at this point,” Bullard said in a virtual presentation to the Council on Foreign Relations on Monday, adding the Fed under Alan Greenspan did such a hike in 1994 leading to a decade-long expansion. “I wouldn’t rule it out, but it is not my base case here.”

WATCH: St. Louis Fed President James Bullard says raising the benchmark rate more than 50 basis points isn’t his base case but won’t rule it out.

Source: Bloomberg