St. Louis Fed President Brad said in an interview on Friday that the Fed is expected to raise interest rates for the first time as soon as the end of 2022 because inflation is rising faster than previously expected.

This point in time is earlier than the Fed's latest hint. According to the latest interest rate resolution, more than 70 per cent of Fed officials expect to raise interest rates in 2023, and more than 60 per cent expect to raise rates twice in the same year, compared with less than 40 per cent in March.

"We were expecting a good year with a good economic restart," Brad said in an interview with CNBC. But this year is better than we expected, and inflation is higher than we expected-I think it's natural for us to be more hawkish. "

On the inflation front, Brad said the situation has exceeded the FOMC's expectations for the past six months. "if you look at the December 2020 forecast, we expected real GDP growth of 4 per cent in 2021. Now we say 7%.

At the time of the first rate hike, Brad said he expected the Fed to start at the end of 2022."but you have to understand that it has something to do with prediction. My forecast is that inflation will be 3% in 2021-that is, core PCE inflation, and core PCE inflation will be 2.5 "in 2022.

Bloomberg commented that Brad's latest speech confirmedAt present, the market has gone through the stage of guessing when the Fed will discuss the reduction, and has officially entered the stage of the Fed discussing the reduction.Looking ahead, the Fed has changed its context. The United States is no longer in the midst of a pandemic, but is recovering from the epidemic, which will mean moving towards a new monetary policy response mechanism.

Mr Brad's speech reinforced the hawkish tone of the fed, where Treasury yields continued to climb during his speech, with the two-year yield rising to 0.25 per cent, its highest level since April 2020, and the dollar rose.