Fed official suggests substantial rate hikes may be needed

The Federal Reserve may have to raise its benchmark interest rate much higher than many people expect to get inflation under control, That’s according to James Bullard, who leads the Federal Reserve Bank of St. Louis. Bullard’s comments raised the prospect that the Fed’s rate hikes will make borrowing by consumers and businesses even costlier and further heighten the risk of recession. Wall Street traders registered their concern by sending stock market futures further into the red early Thursday. Bullard’s remarks followed speeches by other Fed officials in recent days that suggested they see only limited progress, at most, in their use of steadily higher rates to fight inflation.