(Businesshala) – Current high levels of inflation may not be as soon as many US Federal Reserve policymakers expected, St. Louis Fed Chairman James Bullard said on Thursday, as he once again asked the central bank to release its bonds. Urged to take forward the rapid taper-procurement programme.
“I think it’s concerning,” Bullard told a virtual gathering of the Euro 50 group regarding inflation. “While I think there is some chance that this will naturally end over the next six months, I wouldn’t say it’s such a strong case that we can count on that.” Bullard said he only sees a 50% chance either way.
The Fed indicated on Wednesday that it may begin to ease its crisis-era support for the US economy by mid-November amid rising concerns over inflation, and said a reduction in its bond-buying program could be done by the middle of next year. Will last till
Bullard has been one of the fiercest advocates among policymakers to expedite the Fed’s tapering of its bond-buying program, which was introduced at the start of the COVID-19 pandemic to stabilize financial markets and keep borrowing costs low. Was placed.
He has said he would like the taper to end by the first quarter of 2022 because doing so would allow the central bank to raise interest rates sooner than expected if inflation remains uncomfortably high.