Fed's Bullard: Rate hikes will slow economy to trend pace of growth

St. Louis Federal Reserve Bank President James Bullard said on Friday that he expects the Fed's rate hikes to slow the economy to the trend pace of growth, as reported by Reuters.

Additional takeaways

"Current models probably not a good indicator of recession risk."

"Households in a great position to spend going forward."

"No sign from households that we are in imminent stages of them pulling back meaningfully."

"Some components of GDP behaving strangely."

"Inventory adjustments have been very unusual."

"I am bullish on business investment."

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen unchanged on the day at 104.38.