Speaking on CNBC

  • I think we have more to go on rates
  • Fed policy is about risk management
  • The prudent thing to do now with inflation down and downside risks is to lower the policy rate and if the economy powers through, the Fed could then raise rates.
  • Global trade is the biggest issue
  • Chinese might have incentive to wait out this administration
  • It might take a while to reach agreement on trade
  • If look at labor markets and consumption you would think this is a great economy
  • US yields are influenced by global yields
  • The shape of the yield curve is sending a signal that markets are worried about future growth and future inflation
  • The Fed has room to maneuver here.
  • Sees another 25 basis points before the end of the year
  • We will see how the data comes in
  • measures of the excessive risk taking today are not nearly the same magnitude as seenin mid 2000s in late 90s
  • repo volatility is a microeconomic issue not really a macroeconomic issue

Bullard is a voting member on the FOMC in 2019. He is the president of the Richmond Fed