Fed may need to raise interest rates by another half point in 2023: St. Louis

WASHINGTON, May 22 (Reuters) – The head of the St. Louis, James Bullard, said on Monday that the Federal Reserve may have to raise its benchmark interest rate by another half a percentage point this year, suggesting a decision to pause hikes at its June meeting may not mean the end of the tightening cycle is complete.

“The risk of inflation is that it won’t turn around and go back to low levels,” Bullard told the American Gas Association. “As long as the job market is this good, it’s a great time to leave this problem behind and not repeat the 70s.”

The original message in English is available at the code: (Howard Schneider)