Fed’s Bullard: ‘Unwise’ to continue hiking rates amid falling inflation expectations

By FXStreet Federal Reserve St. Louis branch head James Bullard (FOMC voter), said ‘unwise’ to continue hiking rates amid falling inflation expectations.

Headlines

Recent decline in equity and corporate bond markets decreases risk of asset bubbles, giving Fed ‘more leeway’ in its rate hike decisions

Says drop in inflation outlook and financial volatility have undercut some of the core assumptions around which Fed’s dec. rate hike was based

Says quarterly interest rate path projections of Fed officials may be counterproductive, giving markets the sense that rates are on a set path rather than data dependent

Expects US and global growth to strengthen in 2016, with lower longer-term interest rates providing a boost
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Source:: FX Street