‘Great job’ by J.Yellen – Fed’s Bullard

FXStreet (Edinburgh) - St. Louis Fed President James Bullard remains optimistic about a rate hike by the Federal Reserve at its next meeting in December. He also argued that market-based measures are pointing to higher rates while conditions for holding a rate hike have somewhat subsided. Furthermore, he stressed the Fed has ‘unanimous’ support for a gradual increase of rates.

He added that the labour market remains ‘very healthy’, with the unemployment rate gyrating around long-term potential.

Bullard sees inflation figures returning to the 2% target if oil prices stabilize, although occasional drops of energy prices could have a temporary effect on consumer prices.