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Fed's Bullard expects rates to rise at end of Q1 2015

FXStreet (Łódź) - St. Louis Fed President James Bullard spoke to reporters after giving a speech at a conference on banking on Tuesday, saying that he expected the first rate hike to come at the end of the first quarter of 2015.

In his opinion US economic growth should top 3% in the second half of 2014 as well as next year. He pointed to the improvements on the US labor market, reflected by the significant drop in the unemployment rate.

Bullard also commented on the latest Fed monetary policy announcement suggesting that it would be premature to eliminate "considerable time" from the wording of the September statement, referring to the timing of the first rate hike after the end of QE. It should rather be done in October, he suggested.

Ryan Littlestone from ForexLive remarks: "As we’ve been pointing out for a while, the market is still straining at the leash and the October FOMC could be the last explosion before rate rises get priced in and expectation priced out."

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