Fed's Bullard: I dissented Fed decision because a 50 bps rate cut was more appropriate
St Louis Fed president James Bullard issues his statement on the dissent
- There are signs US growth will slow in the near horizon
- The manufacturing sector appears to be in a recession
- Dissent also prompted by inverted yield curve as well as low inflation
- Says a 50 bps rate cut would provide insurance against slowing economy
- It would also promote a more rapid return of inflation and inflation expectations
Nothing out of the ordinary from Bullard as he is the most dovish member among the voting committee this year. The full statement can be found here.
There are two other dissenters to the decision on Wednesday, namely Esther George and Eric Rosengren - both also dissented in July - as they viewed that the Fed should have kept rates unchanged again this month. Expect to hear statements from them as well.