INSUBCONTINENT EXCLUSIVE:
raising interest rates, warning that even one more rate hike could set the stage for recession.
Bullard, who spoke to Reuters on the
sidelines of a conference here for global central bankers and economists, said the yield curve on United States Treasuries suggests
investors see slower growth after this year and no danger of inflation ahead.
Earlier in the day, Fed Chair Jerome Powell gave a talk
rationale for raising rates is that with unemployment at 3.9 percent, inflation will not stay low forever, so rates need to rise
when short-term borrowing costs rise above long-term ones, has preceded nearly every United States recession in recent memory.
After
2007.
That is less than the 25 basis points by which the Fed is expected to raise its benchmark short-term rate in September and again in
possibility, maybe, depending on how hawkish it was read by the market
yield curve last year on Dec
At that time the gap between the two-year and 10-year was 58 basis points.
Since then the Fed has raised rates three times, and the gap has
narrowed as longer-term rates have not risen in tandem with short-term rates.
Markets are pricing in two more rate hikes this year, and one
next year, less than the three rate hikes the Fed currently forecasts for 2019
Policymakers will release fresh forecasts for future rate hikes at its September rate-setting meeting.
