Adding to this previous comments, St. Louis Fed president James Bullard was further noted saying that the best guess is for yield curve to invert this year or 2019.
Key quotes:
“¢ Yield curve inversion only matters if sustained.
“¢ Getting a trade deal done would be good for markets.
“¢ Powell’s Jackson Hole speech was very balanced.
“¢ Fed has been preemptive against inflation pressure.
“¢ Sees elevated risk of policy error if the Fed continues to raise short-term rates.
“¢ Sees ample cushion already for the Fed to deal with next US economic downturn.
“¢ US central bank’s balance sheet shrinking faster as a percentage of US GDP
“¢ It may be time for policymakers to revisit the issue of Fed’s balance sheet size.
“¢ Downplays elevated level of Fed funds rates, cites specific market factors.
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