October 18, 2018 / 3:00 PM / a month ago

Fed plans would put rates 'quite a way' into restrictive area: Bullard

MEMPHIS, Tenn. (Reuters) - The Federal Reserve’s current monetary policy outlook would move interest rates “quite a way” into restrictive territory, slowing the economy and raising the risk of recession, St. Louis Fed President James Bullard said on Thursday.

Bullard, speaking at an event in Memphis, Tennessee, said stronger-than-expected economic growth has allowed the Fed to raise rates farther then he expected it could, but a rise in the benchmark overnight lending rate to 3.4 percent in 2020, “would be moving quite a way into restrictive territory ... the probability (of a recession) would go up.”

Reporting by Howard Schneider; Editing by Paul Simao

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