St. Louis Federal Reserve President James Bullard said the central bank needs to raise interest rates well above a so-called neutral level if it wants to be effective in taming inflation, the official told the Financial Times. "There's a bit of a fantasy, I think, in current policy in central banks," Bullard told the FT in an interview published Wednesday. "Neutral is not putting downward pressure on inflation. It's just ceasing to put upward pressure on inflation." The interview was his latest call for the Fed to be aggressive in tightening monetary policy during a cycle that kicked off in March. A neutral level of ... (full story)