Fed's Bullard says September rate hike still 'very much' in play

The Federal Reserve is on track to raise interest rates this year, with September still "in play," a top Federal Reserve official said on Tuesday, despite growing market volatility and anxiety in the wake of Greece's debt default. 

PHOTO: AFP

JUL 1, 20157:46 AM

[WASHINGTON] The Federal Reserve is on track to raise interest rates this year, with September still"in play," a top Federal Reserve official said on Tuesday, despite growing market volatility and anxiety in the wake of Greece's debt default.

St Louis Fed president James Bullard shrugged off the impact of Greece's economic problems and said the Fed will remain data dependent on its view about when to raise interest rates. "I would say September is very much still in play," Mr Bullard told reporters on Tuesday following a speech he gave at a tech innovation summit. When asked if the Fed could hike rates at the central bank's policy setting meeting in July, Mr Bullard reiterated that policy makers would be guided by data.

Mr Bullard added that the European Central Bank's bond buying program will help keep volatility low in the wake of Greece's debt default and that the default could be beneficial for the US economy, as investors will seek a flight to safety.

REUTERS