Feds Bullard: Higher rates are insurance against inflation. Leaning toward a June hike.

St. Louis Fed Pres. James Bullard in a Financial Times interview is leaning toward a hike in June:

• higher rates are insurance against inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term
• he will keep an open mind going into June meeting but is inclined to another hike
• fall in treasury yields offsets banking sector tightening
• still believes rates are at the low end of sufficiently restrictive with the top and seen above 6%
• better and more prudent to be in the middle of the zone (i.e. 5.5% ish)

Bullard is more of a hawk but has been lightning up of late. These comments are back toward the hawk. Earlier today Fed's Logan said that at the moment, she would support a hike in June (contingent on the data).

The calming of the banking crisis may have policymakers leaning more toward inflation concerns versus the impact of higher rates and banking concerns. Also, as stocks heat up, perhaps Fed officials are also tilting more toward the risks of higher stock gains fueling more spending and higher inflation.

The chance of no change in policy at the June meeting has increased to around 30% from 25% yesterday.

• 2 year yield Yield A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as Read this Term is at 4.230% up 7.5 basis points
• 10 year yield is that 3.64% up 5.9 basis points

US stocks have come off their high levels:

• Dow Industrial Average is down -150 points or -0.45% at 33270.29. The high price reached 33492.48
• S&P index is up 6.4 points or 0.15% at 4165.20. It's high price reached 4186.20
• NASDAQ index is up 93 points or 0.78% at 12598.56. It reached a high of 12664.11