St. Louis Fed President James Bullard said Wednesday the U.S. central bank should "pause" on further rate hikes "for now" given the low inflation readings. In an interview with Market News, Bullard said that he would not support further rate hikes in the near-term given the inflation outlook. The headline and core of the PCE index, the Fed's preferred inflation gauge, have both softened closer to 1.5% in recent months, well below the central bank's 2% target. Bullard, who is not a voting member of the Fed's policy committee this year, has been pressing the central bank to start to reduce the size of its balance sheet. Analysts think the Fed will decide start to shrink its asset holdings at its next meeting in late September.
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