Fed’s St. Louis James Bullard has been crossing the wires. “The United States has likely skirted the recession risks of last year, with businesses adjusting to a new trade environment and the most acute worries about a trade war “abated somewhat,” St. Louis Federal Reserve bank President James Bullard said on Thursday,” – Reuters wrote.
Key comments
- Something like average inflation targeting would ‘make a lot of sense right now’ given several years of inflation being below target.
- Reasonable chance of “soft landing” for u.s. this year from fast 2018 growth, 2019 risks.
- Says businesses are adjusting to remain profitable even in the face of trade uncertainty.
- Bullard says recent developments suggest “near-term uncertainty” about trade policy has “abated somewhat,” and will be less of an issue in 2020 than it was in 2019.
- Bullard notes seemingly large gains in stocks last year influenced by late 2018 selloff; index “essentially unchanged” from Oct. 2018 to Oct. 2019.
About James Bullard
Fed dove James Bullard from St. Louis, who wanted a half-point rather than quarter-point cut in September, has been replaced this year and is no longer a voting member, so his comments are less impactful on the market.
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