Fed's Bullard Still Wants Rate Hike After Jobs Report

By Greg RobbMarketWatch Pulse

The weak September employment report did not persuade St. Louis Fed President James Bullard to change his call for a rate hike. In a speech in New York on Friday afternoon, Bullard said the prudent course of action for the U.S. central bank would be to start to increase interest rates. He said that a rate hike would extend the length of the current expansion. Bullard said the Fed has met its mandate of maximum employment and is closer to 2% annual inflation target than commonly thought based on the Dallas Fed's trimmed mean inflation gauge which is running at a 1.7% annual rate. Bullard dismissed arguments that the Fed should pay attention to the weak global environment. He said policy should be based on domestic variables.

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