the Fed raised rates in March inflation data have dipped and so have
long-term bond yields, the opposite of what would happen if investors
and the public felt the economy was going to continue on a strong enough
course to justify further rate hikes.
its most recent set of projections central bank officials said they
foresaw raising rates two more times over the course of this year, a
pace Bullard said may be "overly aggressive relative to actual incoming
data on U.S. macroeconomic performance."
balance, the U.S. macroeconomic data have been relatively weak since
the March...meeting," Bullard said at a breakfast presentation to the
Association for Corporate Growth. "U.S. inflation and inflation
expectations have surprised to the downside in recent months. Labor
market improvement has slowed."
The Fed is expected to raise rates at its June policy-setting meeting, and will release fresh economic projections at that time.
who regards the economy as mired in a low-inflation, low-growth rut,
has said he feels the central bank needs to raise rates only one more
time, then could pause until it is clear the economy has shifted to a
comments did not mention whether the controversy developing around the
Trump administration could influence the central bank if it begins
weighing on business and consumer confidence, or drags down global
markets as it did earlier in the week.
(Reporting by Howard Schneider; Editing by Chizu Nomiyama)