Fed's Bullard Lifts 2023 Rate Forecast to 5.625%

James Bullard has raised the 2023 interest rate forecast to 5.625% due to expected stronger economic growth. This estimate is above the median of 5.1% and near the high end of official estimates. Bullard believes that the current financial and banking sector stress will ease and prove to be temporary, maintaining confidence in ongoing economic strength.

What is the new interest rate forecast for 2023 according to James Bullard?

• 6.0%

• 5.625%

• 5.0%

• 5.1%

How does the new forecast compare to the median estimate?

• It matches the median estimate.

• It is below the median estimate.

• It is above the median estimate.

• It is the same as the previous forecast.

What does Bullard assume about the current financial stress?

• It will remain constant.

• It will worsen over time.

• It will begin to ease.

• It will lead to a recession.

What is the expected impact of banking sector strains according to Bullard?

• They will prove to be temporary.

• They will have a long-term impact.

• They will lead to increased interest rates.

• They will cause a financial crisis.

What is the main reason for the increased interest rate forecast?

• Decreased economic growth.

• Lower inflation rates.

• Ongoing economic strength.

• Increased financial stress.