Fed official suggests substantial rate hikes may be needed


Stock started the day in a sour note after indications the Federal Reserve may need to raise interest rates much higher than had been expected The fed has been raising rates aggressively trying to tame inflation by applying the brakes to the economy and now James bullard who leads the Federal Reserve bank of St. Louis is suggesting its short term rate may have to go as high as 5 6 or 7% to really put a dent in these stubborn inflationary conditions The fed has already raised the rate to around 4% economic reports are showing inflation starting to ease somewhat but consumer spending and a very strong jobs market are keeping it hot The fed is likely to get more aggressive making borrowing more costly and further heightening the risk of recession I'm Jackie Quinn

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