St. Louis Federal Reserve Bank President Jim Bullard said Monday that an interest rate hike isn’t likely at the Fed’s meeting next week, but that there is a good chance the rate will be raised at the Fed’s September meeting.
“If you look at Janet Yellen’s testimony last week in Washington, she talked a lot about how you should go earlier and be gradual,” Bullard said in an interview with Fox Business.”That’s certainly my view.”
Regarding the recent instability of the global economy, Bullard said he wasn’t overly concerned. “Of course there are risks out there,” he said, “but I don’t think they are going to manifest themselves in actually coming back to bite the U.S. economy during the second half of the year or beyond that.”
Bullard also said that the U.S. economy is much closer to normal than five years ago, and that it’s strong enough to handle a rate increase. The unemployment rate is expected to fall below 5 percent by the end of this year, he said, and inflation is a little low but likely will rise.