In a telephonic interview with MNI news, St. Louis Federal Reserve bank president James Bullard said to wait for the economic reaction of the latest policy decisions prior to taking sides on future actions by the US Federal Reserve (Fed).
Key quotes
It would be perhaps naive to think any single agreement would settle all issues between the two economies (the United States (US) and China).
We made a lot of changes to monetary policy during 2019. Given the long and variable lags in monetary policy, we would expect those to come online during 2020.
You’d like to wait and see what those effects are going to be and what the data is going to bring to us. I wouldn’t be leaning in any direction at this point.
FX implications
The market shows no major reaction to the news as it contained nothing significant while a major chunk of traders is busy watching over the US-China story during the early Asian session on Tuesday.
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