Fed's Bullard: Inflation Likely To Return To 2% In U.S.

Inflation will likely return to the U.S. central bank's 2% annual target, said St. Louis Fed President James Bullard, on Friday. Low inflation has been a sticking point for some Fed officials who don't want the Fed to raise interest rates until it convincingly moves higher. In a speech in Fort Smith, Ark., Bullard said if oil stabilizes at the current level and all other prices continue to increase as they have during 2015 so far, the headline consumer price index would be more than 2% at the end of 2016. The St. Louis Fed president, who will be a voting member of the Fed's policy committee, has been a strong advocate for an interest rate hike in December.