St. Louis Fed president supports earlier rate hikes
The St. Louis Fed president has turned more hawkish, favoring earlier, gradual rate hikes. He cited eroding inflation credibility after the Treasury selloff.
The official had preferred a 25bp hike at July’s meeting, where the Fed held rates 9-3. Other Fed officials have also commented on the decision to hold rates steady.
The Fed’s stance on inflation and rate hikes will be closely watched by markets. The official’s comments come ahead of a speech by the St. Louis Fed president.