Saint Louis Fed President James Bullard warns that the Fed risks going too far and could push the economy to a recession. He says that cross-currents are buffeting the economy and that bond markets provide a warning that the Fed’s policy may be too tight.
Bullard expects economic growth to moderate to a pace of 2.25% to 2.50% in 2019. “Rates are in the right place,” says the policymaker. and adds that no new hikes are warranted.
Regarding financial markets, Bullard states that high volatility is a return to normal and he is not concerned.
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