Fed’s Bullard says economic outlook, including rate hikes, is not a ‘threat’ to stock market
The economic outlook, including the Federal Reserve’s shift to a less easy policy stance, shouldn’t necessarily cause the stock markets to suffer, said St. Louis Fed President James Bullard on Monday.
“I’m really not seeing any threat to the market at this point,” Bullard said.
Corporate earnings “will be just fine,” Bullard said. The economy should grow at a 3.5%-4% annual rate this year, aided, by the fading effect of the omicron variant. This will lead to a “second sort of reopening of the U.S. economy,” he said.
Bullard repeated that he would like the Fed to raise its policy rate by 100 basis points by July 1.
Asked if this meant a 50 basis point move in March, Bullard said he would defer to the leadership of Fed Chairman Jerome Powell.
“I think the path I’m mapping out is a good one given the information that we have as of today,” Bullard said.
“Maybe it does…
