FRANKFURT?Federal Reserve Bank of St. Louis President James Bullard said on Friday he is "leaning toward supporting" a rate increase at the U.S. Federal Reserve's December policy meeting.
"Markets are currently [pricing in a] high probability of a December move, I'm leaning toward supporting that," Mr. Bullard said at a banking conference here. "The question now is about 2017."
Investors expect the Fed to increase interest rates next month for the first time in a year. They have begun pricing in a faster pace of rate increases since President-Elect Donald Trump pledged during campaigning for the Nov. 8 election to boost spending on infrastructure and cut taxes, which could stimulate the economy.
Mr. Bullard said Mr. Trump's expected policies, including measures aimed at encouraging companies to repatriate profit from overseas, could spur the U.S. economy by 2018 or 2019.
He said the rise in government bond yields and inflation expectations since Mr. Trump's victory was a "positive sign."
"The 10-year bond yield has come up since the election, that's been a sharp move, but the?yield is only about the level it was when the Fed moved in December of last year," Mr. Bullard said.
"So far so good, if we've raised inflation expectations back to more natural levels," he said.
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(END) Dow Jones Newswires
November 18, 2016 07:25 ET (12:25 GMT)
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