Gold Silver Reports — St. Louis Federal Reserve President James Bullard said global markets appear to be “well-prepared” for a Summer interest rate hike from the US Fed, he did not specify a date for the policy move.
“My sense is that markets are well-prepared for a possible rate increase globally, and that this is not too surprising given our liftoff from December and the policy of the committee which has been to try to normalize rates slowly and gradually over time,” Mr. Bullard told a news conference after speaking at an academic conference in Seoul, Korea
“So my ideal is that if all goes well this will come off very smoothly.”
Mr. Bullard added a rebound in US GDP growth seems to be materializing in Q-2 but reserved his opinion on whether the Fed should hike in June or July for the next policy meeting at the US central bank.
His comments followed revised data Friday that showed Q-1 growth in the US was not as weak as analysts expected.
Responding to the GDP data, economists said strong income growth, together with signs the economy was picking up steam in Q-2, could give the Fed ammo to raise interest rates as early as June.
The USD rallied Vs Asian currencies early Monday after the revised GDP data and on Fed Chairwoman Janet Yellen’s comments Friday that a rate hike in the US in coming months would be appropriate.
The CME’s 30-day Fed funds futures project a 28% chance of rate hike in June and a 60% chance in July. — Neal Bhai Reports