Fed’s Bullard: Target interest rate remaining near zero through 2023

St. Louis Federal Reserve President James Bullard crossed wires, via Reuters, during late Tuesday. Following his comments expecting faster economic growth, the Fed policymaker contrasts Dallas Federal Reserve President Robert Kaplan by turning down the rate hike till 2023.

Additional comments from the US banker turn down the tapering, for now, but don’t rule out discussions over the same "if we see all the good things happening".

Furthermore, the policymaker does not see inflation easing much in 2022, hopes those price increases will raise inflation expectations to fed target while “combination of easing pandemic, ‘relaxed’ Fed and strong fiscal policy means growth could be even stronger,” said Fed’s Bullard.

Market reaction

Although bears are catching a breather after an active performance the previous day, fears of sluggish rate and tapering could weigh on the risks.

Read: AUD/USD: Consolidates heaviest drop in a month above 0.7600 even as risk-off prevails