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Fed's Bullard says he sees two rate hikes in 2022

FILE PHOTO: St. Louis Fed President James Bullard speaks about the U.S. economy during an interview in New York February 26, 2015. REUTERS/Lucas Jackson

(Reuters) – St. Louis Federal Reserve Bank President James Bullard on Monday said he expects the Fed to raise interest rates twice in 2022 after it wraps up its bond-buying taper mid-year, though he said if needed the Fed could end the taper in the first quarter.

“If inflation is more persistent than we are saying right now, then I think we may have to take a little sooner action in order to keep inflation under control,” Bullard said in an interview on Fox Business Network. “We’ve done a lot to move the policy in a more hawkish direction,” he added, noting that the Fed has begun its taper earlier, and plans to proceed with it faster, than had been thought even six months ago.

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