Fed’s Bullard sees spring price rebound, summer rate hike

Federal Reserve Bank of St Louis President James Bullard Interview
James Bullard, president of the St. Louis Federal Reserve Bank, speaks during an interview in New York, U.S., on Wednesday, Feb. 12, 2014. Bullard said the Fed will probably signal the path for interest rates based on "qualitative" judgments of the economy, moving away from a pledge to begin considering higher rates when unemployment falls below 6.5 percent. Photographer: Scott Eells/Bloomberg via Getty Images
Photograph by Scott Eells — Bloomberg/Getty Images

The Federal Reserve should make a change to its policy statement next month that would allow it to monitor inflation readings through the spring and then hike interest rates some time in the summer, a top Fed official said on Thursday.

St. Louis Fed President James Bullard said on CNBC the U.S. central bank should drop the word “patient” from its statement at a March 17-18 meeting, in order “to provide optionality … going forward.”

“If we take it out, then we can move at any of the meetings during the summer,” he added. “If expected inflation goes back to more normal levels then I’d have confidence that actual inflation would follow behind. Through the spring here we’ll have to see evidence of that.”