There will be no recession in the U.S. by Investing.com

Despite skyrocketing inflation on both sides of the Atlantic, US Federal Reserve Banker James Bullard believes both the Federal Reserve (Fed) and the European Central Bank (ECB) can achieve “relationships” in controlling inflation. A soft landing for the economy.

In a speech on Tuesday, he said central banks can tame the economy without triggering a recession. The economy can handle higher interest rates, he summarized.

“The Fed needs to move rates further into the control zone,” the St. Louis Fed president said. “There will be no recession in America.”

The US Federal Reserve has raised its rate four times this year. The target range is now 2.25 to 2.50 percent, while the key interest rate range was 0.00 to 0.25 percent at the start of the year. Further interest rate hikes are expected this year. The next central bank meeting is in September. A 50 basis point hike is expected, but another 75 basis point rate hike is possible. The size of the next rate hike will primarily depend on incoming data on inflation.

They too have recently initiated a turnaround in interest rates. In July, the eurozone’s monetary watchdog raised its key interest rates for the first time since 2011. The key interest rate was hiked by 50 basis points to 0.50 percent.