Dovish stuff from Bullard

  • Trade dispute may have larger impact on global markets
  • Inversion in bond rates now also supports case for lower interest rates
  • Trade uncertainty means expected slowdown in US growth may be even sharper than anticipated
  • Rate cut may also give insurance on economic slowdown
  • Market is telling us that current rates are too high

This was about what I anticipated from Bullard. When he spoke two weeks ago he talked about the potential for a cut this year but he's moved that up to 'soon' and taken a more explicit stance (although he isn't yet openly calling for a cut). It will be interesting to see if he dissents at this month's meeting.