In the Asian session on Saturday (May 6), the U.S. dollar index fell, with the latest price of the U.S. dollar at 101.28, a drop of 0.15%. Bullard said he supported a quarter-point rate hike this week and thought it would be a good next step for the FOMC because inflation remains high.
He believes that the base case for the U.S. is that economic growth will be slow, the labor market will soften, inflation will fall, and the Fed can still achieve a soft landing for the economy. He also said that a “majority” of the Monetary Policy Committee wants to raise interest rates above 5%, and believes that current monetary policy has been tightened enough and interest rates have reached sufficiently restrictive levels. Regarding the labor market, Bullard said the nonfarm payrolls report was “again” stronger than expected, suggesting that the labor market is very tight and will take time to cool. And a strong labor market could mean continued consumption, boosting confidence in continued economic growth.
