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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.