If anything, Bullard’s comments suggest the Fed is finally coming around to the idea that if it wants to get inflation back under control, it needs to inflict some shock and awe into the markets and, quite possibly, the economy by tightening monetary policy more than markets expect—and sooner rather than later. In that sense, 75-basis-point rate hike, which the Fed hasn’t done since 1994, isn’t as outlandish as it may seem.

Jenny Paris is executive editor at Bloomberg News for global bond, currency and emerging markets. She has previously worked at the Wall Street Journal and Dow Jones Newswires covering the euro zone crisis and as a managing editor for Asia equity markets.

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