Fed's Bullard calls for rates to rise to 5.5-5.75% - Reuters

A top US central bank official said that the Fed funds rate should rise to 5.5-5.75%.

Speaking to Reuters, St.Louis Fed chief, James Bullard, said that recession talk was based on models that put too much weight on the idea that interest rates went up quickly.

But what about the strong jobs market, its effect on consumption and the pandemic money still being spent, he asked.

Bullard also highlighted how the St.Louis Fed's financial stress index had spiked after the 10 March collapse of Silicon Valley Bank, but later quickly fell back to a normal reading.

He also cautioned against tying the Fed's hands behind its back once that level of rates was reached, so that it could respond to incoming data.