Comments from Bullard:

  • Inflation below target is surprising given fast growth
  • A 50 basis point cut in July would be overdoing it
  • Holding rate in June puts June probability really high
  • Yield curve could go back to normal with lower rates
  • Q2 and H2 US growth both look slower

These comments are not dovish. An 'insurance cut' is not the start of a cycle and if a dove like Bullard isn't interested in 50 bps, it's not going to happen.

He said it's a "good time" for a small rate cut. "I don't think we have to take urgent action. This is more in the realm of insurance," adding that a 50 basis point cut would be "overdone"