Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Fed Can Still Achieve Soft Landing, Bullard Says

Published May 05, 2023 01:35PM ET Updated May 05, 2023 01:54PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Bloomberg. James Bullard, president and chief executive officer of the Federal Reserve Bank of St. Louis, speaks during a Bloomberg Television interview at the Jackson Hole economic symposium in Moran, Wyoming, US, on Friday, Aug. 26, 2022. Federal Reserve officials stressed the need to keep raising interest rates even as they reserved judgment on how big they should go at their meeting next month.

(Bloomberg) -- Federal Reserve Bank of St Louis President James Bullard said he thinks the US central bank can still achieve a soft landing, with inflation returning to the Fed’s 2% target without triggering a significant downturn.

“Yes, the economy could go into recession, but that’s not the base case,” Bullard told the Economic Club of Minneapolis on Friday. “I think the base case is slow growth, probably a somewhat softer labor market and declining inflation.”

“I think all of you should put most of your weight on that scenario,” he added.

Bullard is not a voter on the rate-setting Federal Open Market Committee this year.

He also said Friday’s jobs report was stronger than expected, and noted that job openings are still much higher than they were before the pandemic. 

“This is a very tight labor market. It’s going to take a while to cool it off,” he said. “I think we have to be patient on that dimension and understand that.” 

Data released earlier Friday showed US employers added an unexpectedly solid 253,000 jobs last month. The unemployment rate fell back to a multi-decade low of 3.4%, and average hourly earnings rose 4.4% from April last year.

Fed officials raised rates by a quarter point on Wednesday to a 5%-5.25% target range, the highest level since 2007, while signaling they could pause at their meeting in June. 

The move extended the most aggressive tightening campaign in decades as US central bankers fight generation-high rates of inflation. Price pressures have eased from their peak but remain more than double the Fed’s target.

Bullard said he supported the move, and said the “preponderance” of the committee wanted to see interest rates above 5%. He also played down recent stress in the banking sector, which he said can be managed.

(Updates headline and adds Bullard comment in tenth paragraph.)

©2023 Bloomberg L.P.

Fed Can Still Achieve Soft Landing, Bullard Says
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
MadMax Verstapp
MadMax Verstapp May 07, 2023 6:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
so in fact they cannot
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email