The Fed should reduce its balance sheet next year, Federal Reserve Bank of St. Louis President James Bullard said in an interview published Friday, and added that he now sees the need for one rate hike next year.
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Bullard, who had said there would not be the need for a rate hike next year, told the Wall Street Journal that since the election bond yields have risen, which he views as a signal for the need for a rate hike next year.
The Fed's Summary of Economic Projections predicted three increases in the fed funds rate target next year.
