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Speaking in an interview with Bloomberg, CEO of the Federal Reserve Bank of St. Louis, James Bullard, says that the Fed will be much less pre-emptive about hiking rates.

Key comments

Bullard said that he supported the FOMC decision last week.

Bullard expects that the Bank’s new approach to lifting inflation will work.

Bullards said that the Bank will be much less pre-emptive about raising rates.

Bullards said there may be enough fiscal aid in the pipeline for recovery.

Market implications

Markets have already priced in the stance at the Fed that will help to ensure plentiful USD supply.

Fed Chairman Powell appears before the House Financial Services panel tomorrow with US Treasury Secretary Mnuchin, and Powell will also appear before the House Panel on COVID-19 on Wednesday.