Fed's Bullard: Better to start hikes “sooner rather than later”, QT should begin “shortly after” By Frank_Macro Fed InterestRate
erest rates three time in 2022. Moreover, he added, it is better to get started with rates hikes "sooner rather than later" and the pace of rate hikes can be moderated later if inflation slows. The balance sheet run-off should begin "shortly after" the initial interest rate rise, he added. "It's uncertain how much inflation control will depend on "natural moderation" versus Fed intervention.
"Balance sheet could decline even below pre-pandemic levels given existence now of standing repo facility.""Fed "very surprised" by the level of inflation, "incumbent" on the central bank to act to maintain its credibility.""A smaller balance sheet and higher policy rate means that both ends of the yield curve should rise in tandem."
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
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