Federal Reserve Bank of St. Louis President James Bullard said on Thursday that he sees no further need to raise interest rates, however, argued that the central bank should begin cutting its $4.5 trillion portfolio "sooner rather than later."
Bullard is not a voting member of the rate-setting Federal Open Market Committee, which last week raised the Fed's short-term rate by a quarter percentage point to a range between 1% and 1.25%.
It was the third such move since mid-December, and the Federal Reserve has projected one more quarter-point rate increase this year and three in each of the next two years.
Last week's rate increase is "not such a big problem," Bullard said. But the projection to raise the federal-funds rate to 3% over the next 2½ years "is unnecessarily aggressive," he added. "The trajectory that the committee has laid out seems to me to be inappropriate given the situation that we're in."
What's Hot On TheStreet
Tesla still doesn't deserve its valuation: Tesla TSLA fanboys have just gained their daily pound of flesh. The electric car company has reportedly reached a deal with officials in China to open a production facility in the world's biggest clean-energy car market. The deal would likely allow it to form a joint-venture with a China-based partner and avoid the 25% tariff applied to imported vehicles. The move would also substantially cut shipping and production costs when compared to Tesla's facility in Nevada, TheStreet's Martin Baccardax reports.
Tesla is now valued at an insane $61 billion...and counting.
What was this Kroger exec drinking: Maybe this Kroger KR fella has been up too late studying the aftershocks of Amazon's AMZN big deal for Whole Foods WFM . "I'm glad their stores are finally open," Kroger CFO Michael Schlotman said about German rival Lidl at Oppenheimer's Consumer Conference Wednesday. Schlotman said he is excited, in fact he feels "great about it," to finally start seeing if the preparations Kroger put in place to compete with Lidl will stand the heat. TheStreet's Lindsay Rittenhousewas all over this bizarre exchange.
Having your profit margins crushed by a ruthless German grocer shouldn't be exciting, Kroger.
Don't forget about Intel: Advanced Micro Devices AMDmay beat Intel Corp. INTC to selling the fastest computer chip this year, but the technology giant is working on other projects that are pushing the limits.
From artificial intelligence to drones, Intel is working to connect everything to the internet to collect data that can be used to improve safety, efficiency and lifestyles. Whether it is helping athletes perform better or making cars autonomous, Intel's technology is working to transform multiple industries. Here's 11 cool projects Intel is working on that investors seem to have forgotten about.
Visit here for the latest business headlines.