St. Louis Federal Reserve President James Bullard said on Monday global markets appear to be “well-prepared” for a summer interest rate hike from the Fed, although 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 normalise rates slowly and gradually over time,” Bullard told a news conference after speaking at an academic conference in Seoul.
“So my ideal is that if all goes well this will come off very smoothly.”
Bullard added a rebound in U.S. GDP growth seems to be materialising in the second quarter, but reserved his opinion on whether the Fed should hike in June or July for the next policy meeting at the U.S. central bank.
His comments followed revised data on Friday that showed first quarter growth in the U.S. was not as weak as initially expected.