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