President of St. Louis Federal Reserve James Bullard on Thursday said he become more hawkish after inflation data posted biggest annual increase in 40 years and he is advocating a full percentage point of interest rate hikes over the next three U.S. central bank policy meetings.
Market immediate reacted to his comments with future contracts rate fully priced an increase in the Fed’s target range for its policy rate to be 1%-1.25% by the end of its policy meeting in June.
“I’d like to see 100 basis points in the bag by July 1,” Bullard told Bloomberg News in an interview.
Between now and July 1, only three Fed meetings are schedule and Bullard’s comments points towards at least one half-percentage point rate hike.
