Fed’s Bullard: Solid US economy can handle rising rates

WASHINGTON (AP) — St. Louis Federal Reserve president James Bullard says last week’s jobs report points to a solid U.S. economy with little sign of a recession on the horizon and one that can withstand higher interest rates. Financial markets are flashing signs that an economic downturn could arrive sometime next year, as Americans grapple with the highest inflation in four decades and the Fed pushes borrowing costs higher. But Bullard said in an interview with The Associated Press on Monday (July 11, 2022) that the central bank wouldn’t have to drive the economy into a recession or significantly raise unemployment to bring inflation down to its 2% target.