US Fed prevents American slump unless large surprise| MENAFN.COM

Friday, 01 July 2022 11:30 GMT

US Fed prevents American slump unless large surprise


(MENAFN) The US Federal Reserve Bank of St. Louis leader James Bullard stated on Friday that the central bank does not allow an American slump except if there is a large surprise.

"Recessions would have to come because there’s some really large shocks, but I can’t rule out that there would be some really big shock," Bullard stated to the FOX network. "Maybe there would be, but I am not seeing it near-term."

The Fed increased interest rates by 25 basis points two months ago and an extra 50 basis points May 4 to decrease record inflation. Fed leader Jerome Powell also signaled that over 50 basis points rate hikes are on the table in coming gatherings.

With the Fed's aggressive posture and violent financial narrowing, the US share market has been on a decrease for the last two weeks.

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