Richmond Federal Reserve Bullard president, a voting member on the FOMC in 2019, has been interviewed on CNBC saying that he wants another 25bp cut before end of 2019, and came with the following additional statements:
- Chinese might have the incentive to wait out this administration.
- It might take a while to reach an agreement on trade.
- If look at labour markets and consumption you would think this is a great economy.
- US yields are influenced by global yields.
- The shape of the yield curve is sending a signal that markets are worried about future growth and future inflation.
- The Fed has room to manoeuvre here.
- Sees another 25 basis points before the end of the year.
- We will see how the data comes in.
- I think we have more to go on rates.
- Fed policy is about risk management.
- The prudent thing to do now with inflation down and downside risks are to lower the policy rate and if the economy powers through, the Fed could then raise rates.
- Global trade is the biggest issue.