Federal Reserve May Raise Interest Rate by 75 Points, Says Official

St. Louis Fed President James Bullard discussing the effect of the new coronavirus on the global and U.S. economies during a presentation in Fort Smith, Ark., on Feb. 28, 2020. Federal Reserve Bank of St. Louis

The U.S. central bank may hike interest rates by up to 75 points due to the high rate of inflation, according to James Bullard, president of the St. Louis Federal Reserve Bank who also added that he does not expect such an increase to occur right away.

Bullard pointed to Fed’s 75-point interest rate hike in 1994 under the leadership of Alan Greenspan which was made in response to a surge in inflation. The decision resulted in an economic boom.