January 10, 2019 / 5:58 PM / 5 months ago

Fed's policy stance too hawkish, rate rises should stop -Bullard

Jan 10 (Reuters) - St. Louis Federal Reserve Bank President James Bullard said on Thursday that inflation expectations suggest the U.S. central bank’s policy stance “might be too hawkish,” adding that the Fed should heed market signals and stop raising interest rates.

The Fed should also be careful not to get so aggressive on interest rats that it inverts the yield curve, which would signal a downturn, Bullard said.

Though the central bank has taken the opportunity of upside surprises in economic data to normalize rates over the last two years, he said, “Market-based signals such as low market-based inflation expectations and a threatening yield curve inversion suggest that this window of opportunity has now closed.”

Reporting by Ann Saphir Editing by Chizu Nomiyama

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