Fed’ Bullard: Economy needs one rate hike through 2019

Federal Reserve Bank of St. Louis President James Bullard said on Monday, according to their model and in the absence of any change in policy, US economy will need only one rate hike through 2019 to reach a neutral rate given that inflation and unemployment are close to Fed’s target.

“I conclude that a single 25-basis-point increase in the policy rate – from 38 to 63 basis points – will get us very close to the standard recommended value over the forecast horizon,” Bullard said. (The forecast horizon runs through 2019.)