Fed´s Bullard says more than one rate hike unlikely in 2017
A top US monetary policy-maker stuck to his view for just one more interest rate hike in 2017.
On a visit to financial weekly Barron's, the president of the Federal Reserve bank of Philadelphia, James Bullard, said the current level of the US central bank´s main policy rate was "about right", given the current environment.
So while the political regime had changed, that did not necessarily mean the interest rate regime had too.
“We’ll see if it switches, but I wouldn’t bet on it.”
To take note of, Bullard, who was not a voter on the Federal Open Market Committee in 2017, said he had not factored in changes to the country´s fiscal policy into his forecasts.
Some of the policies mooted by the President-elect, such as deregulation, infrastructure spending and tax changes could boost productivity and growth but others, such as border taxes and immigration restrictions, could have the opposite effect.
Bullard said he was waiting for clarity before modifying his forecasts.
In his remarks, the rate-setter also said any legislation increasing political oversight of the monetary authority was a poor idea, although it was more likely to pass given the current political landscape.
Lastly, he welcomed the prospect of more members with business backgrounds joining the FOMC.