St Louis Fed president James Bullard speaks to CNBC
- Market has expectations for low inflation
- Labour market is doing well, retail sales very good
- There are still downside risks, want to take out more insurance
- Fed should cut rates because yield curve inversion is "not a good place to be"
- We have been below inflation target since 2012
- Would like to focus on hitting inflation target
It looks like Bullard is making his case for voting in favour of a 25 bps rate cut in September. This will offset Esther George's stance of going against a rate cut as seen yesterday. Among the voting members this year, these two are polar opposites on the dove-hawk scale.
If you didn't already know, Bullard is the most dovish member among the FOMC voting board this year and sits alongside Kashkari on the dovish extreme.
