Federal Reserve Bank of St. Louis President James Bullard said markets have priced in a lot of central bank rate rises, and it is up to the Fed to deliver on investor expectations.
“The fact that market interest rates have moved above their prepandemic benchmarks while the policy rate has not can be read as an illustration of the effect of credible forward guidance,” Mr. Bullard said in materials for a presentation Thursday. He was referring to central bank communications that indicated policy makers expect a string of aggressive rate rises aimed at countering the highest levels of inflation in 40 years.
