Fed's Bullard to Trump: Enough with pro-growth promises, the markets want action

The 10-year Treasury yield is settling down after a postelection pop, as the market looks to President-elect Donald Trump and Republicans in Congress to deliver on economic growth promises, St. Louis Federal Reserve President James Bullard told CNBC on Thursday.

Appearing on "Squawk Box," Bullard said there's no need to dramatically increase rates right now.

The 10-year yield spiked along with the stock market after Trump won the presidency on expectations that his tax cut and deregulation plans would boost the economy.

Bullard said he does not see Trump's agenda having much impact this year.

The Fed expects to raise interest rates three times this year, after policymakers increased the cost of borrowing money by a quarter-point in December. It was only the second hike in the past decade.

The current range for short-term rates stands at0.5 percent to 0.75 percent.

Bullard, who's not a voting member on the Fed's policymaking committee in 2017, said that increasing rates again because of higher economic growth would be good news.

The next Fed meeting is set for Jan. 31-Feb. 1. But investors have to wait until the March gathering for another news conference from Fed Chair Janet Yellen. At this point, the market isn't putting much odds on a hike at either meeting.

During the campaign, Trump made it clear he's no fan of Yellen — accusing her of being politically motivated to keep rates low to continue to support the economy to burnish President Barack Obama's legacy.

There's an expectation Trump may aim to shake up the central bank with a heavier emphasis on business experience among policymakers, to which Bullard said: "It's great to have a mix of people involved in the Fed."

"You don't want everyone to be a clone. You want a variety of backgrounds. I think we have that now. If we could get more of that, I think that would probably be a strength for the organization," he added.