The Federal Reserve should stick to raising interest rates to lower inflation while the labor market remains strong, given the high probability recent financial stresses will continue to abate and absent a marked tightening of credit conditions, St. Louis Fed President James Bullard said on Thursday.
“We’ve got a long ways to go and I think inflation is going to be sticky going forward, it’s going to be difficult to get inflation back down to the 2 percent target ... so we are going to have to stay at it in order to apply pressure to make sure inflation gets back down,” Bullard told the Arkansas Bankers Association in Little Rock, Arkansas.
