USA: We will have to be firm to bring inflation back to 2% – Bullard (Fed)
WASHINGTON, Aug 3 (Reuters) – The Federal Reserve (Fed) is determined to raise interest rates to bring inflation, which has not been so high in four decades, back to the 2% target set by central bank, said Wednesday the president of the antenna of Saint-Louis, James Bullard.
“We’re going to be tough and make sure that happens,” James Bullard said in an interview with CNBC. “I think we can take strong action and get back to 2%.”
With inflation showing no signs of easing yet, the Fed will need to see evidence – through headline and core inflation measures – that price pressures are easing before officials of the issuing bank may have the feeling that they are doing enough. (Report Lindsay Dunsmuir, French version Laetitia Volga, edited by Jean-Michel Bélot)