Fed's Bullard Won't Rule Out 75 Basis Point Hike

The transcript discusses the 1994 policy rate increase of 300 basis points, which was successful in setting up a strong US economy in the late 1990s. It highlights a 75 basis point increase during that cycle and suggests that while such an increase is not the base case now, it is not ruled out. The current market pricing is doing some of the work for the Fed, reducing the need for surprises. The focus is on ratifying promised increases in the funds rate, unlike in 1994 when the Fed had less credibility on its 2% inflation target.

What was the outcome of the 1994 cycle when the policy rate was raised by 300 basis points?

How did the 1994 policy rate increase affect the US economy in the second half of the 1990s?

What does the speaker mean by 'ratifying the promised increases in the funds rate'?

What is the speaker's view on the need for surprises in the current market compared to 1994?

What does the speaker suggest about the credibility of the Fed regarding its 2% inflation target?