St. Louis Federal Reserve President James Bullard said on Thursday that he has become “dramatically” more hawkish in light of the hottest inflation reading in nearly 40 years, and he now wants a full percentage point of interest rate hikes over the next three U.S. central bank policy meetings.
Within minutes, Bullard’s view became the market’s view, with rate futures contracts now fully pricing an increase in the Fed’s target range for its policy rate to 1 percent-1.25 percent by the end of its policy meeting in June, with some bets on an even steeper rate hike path.
