WASHINGTON, Feb. 27 (Xinhua) -- If the Federal Reserve continues to raise short-term rate, the monetary policy could be too tight for the current economy, St. Louis Federal Reserve President James Bullard said on Monday.
"If the Committee raises the policy rate substantially from here without other changes in the data, the policy setting could become restrictive," Bullard said.
According to the semiannual Monetary Policy Report to the Congress released by the Fed last week, Fed officials expect three interest rate hikes this year.
Wall Street expects the Fed to raise rate at next month's meeting. The Fed increased the cost of borrowing money three times last year.
Bullard, however, has been cautious about interest rate hikes, arguing the U.S. is in a low-growth and low-inflation regime.
"I have been a little bit concerned that the committee goes too far too fast," Bullard said. "If we are going to do a lot of rate hikes we have to have data that supports that."
A single purchase
