The Federal Reserve needs to get inflation on to a sustainable path down toward its 2% goal this year or else risk a repeat of the 1970s, when interest rates had to be repeatedly ratcheted up, St. Louis Fed President James Bullard said. “If inflation doesn’t start to come down, you risk this replay of the 1970s where you had 15 years where you’re trying to battle the inflation drag,” Bullard told CNBC. “That’s why I’ve said let’s be sharp now, let’s get inflation under control in 2023 and it’s a good time to fight inflation because the labor market is still strong.” Bullard reiterated his view that rates in the 5.25% to 5.5% range would be adequate to tame inflation.
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