Federal Reserve Bullard: Surprising drop in unemployment to fuel inflation, bolsters case for rate hike early 2015 via ForexLive

I had the headlines earlier:

• Federal Reserve likely to raise rates sooner than investors expect
• Sees 3% growth rate through the rest of this year
• Ssays markets should heed Fed's grwoth forecasts
• Unemployment could fall below 6% in the next two reports
• Says unemployment drop will propel inflation above 2%

Bloomberg have the full story up now:

Federal Reserve Bank of St. Louis President James Bullard said a surprisingly fast drop in unemployment will fuel inflation, bolstering his case for an interest-rate increase early next year. … “I think we are going to overshoot here on inflation,” Bullard said today in a telephone interview from St. Louis. He predicted an inflation rate of 2.4 percent at the end of 2015, “well above” the Fed's 2 percent target.

More at the link

posted via ForexLive