James Bullard, who is among the voting members of the FED, made important statements about inflation and interest rate decisions.
- I find the recession possibilities exaggerated, but growth will continue to be slow for the rest of this year and into 2024.
- Our economy will likely continue to grow slightly below the trend.
- The median forecast of 5.1% for September is due to the slow growth of the economy and inflation improvements that have not yet materialized.
- Markets are raising inflation expectations.
- We had to keep interest rates high to reduce inflation.
- The FED will have to raise the policy rate, and maybe 50 basis points will be increased this year.
- I want to fight inflation while the labor market is strong.
- I expect two more rate hikes this year.
- The labor market is slowing down a bit, but it doesn't mean a recession.
- Factors affecting inflation did not change much. Inflation remains high, which is one of the reasons for its further increase.
- If inflation is not controlled, the Fed will have to do more and we may encounter more errors.
- I do not expect a change in monetary tightening anytime soon.
Although Bullard's hawk statements caused an upward movement in DXY, Bitcoin was not very affected by this situation and gave an adverse reaction and reached the $27,000 limit again.
While there is an expectation in the markets that the FED will stop the rate hikes in June, negative statements are coming from the FED members. While Powell said that we will stick to the data, the fact that some FED members continued to make hawkish statements despite falling inflation confused investors.