Fed’s Bullard – thinks 2 rate cuts by year end would provide a soft landing

Fed’s Bullard, who shook the markets to their core earlier on the following his comments that argued a 50 bp cut would be too much in July,  has now said that he  thinks 2 rate cuts by year-end would provide a soft landing  

• Fed’s Bullard: 50 basis points rate cut in July would be overdone

FX implications:

Markets are monitoring  every word that  Fed  speakers are coming out with since the last Fed meeting. There was an immediate  25  point move in the DXY following Bullard’s comment  and then, Fed Chairman  Jerome Powell  also dampened expectations of an uber-dovish Fed for the rest of this year.  Powell said  the rate-setting Federal Open Market Committee was “grappling with is whether these uncertainties will continue to weigh on the outlook and thus call for additional policy accommodation,” in prepared remarks. He also  stated that the amount of tariffs currently in place are not large enough to [directly] have an economic impact, but the uncertainty they bring is impacting the confidence of financial and agricultural markets.

Possible more to come from Bullard…