St Louis Fed President James Bullard said on Wednesday that the Fed expects further policy tightening in the coming months and the market is well aware of that.
“The dots[ar y map rhagolwg cyfradd llog]notes that the Federal Open Market Committee (FOMC) expects significant additional action this year,” the governor said in an online forum on emerging markets. It appears to be interpreted correctly,” he said.
The target range for the Federal Funds (FF) rate is currently 3-3.25%. A dot plot of FOMC participants’ economic forecasts, released quarterly, shows the median forecast for the federal funds rate to reach 4.4% by the end of the year. That would suggest a further increase of 1.25 percentage points in the other two meetings this year, scheduled for November and December.
Original title:Fed’s Bullard Says Markets Got the Message on Tax Hikes (抜粋）
