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  • Bullard notes that the tradewar is weighing on US rates.  
  • Some of recent mkt downdraft could be ‘overdone’ given us data.

Fed’s Bullard, who  the president and CEO of the  Federal  Reserve Bank of St. Louis, speaking on Fox news.  

Key comments

  • Bullard notes that the tradewar is weighing on US rates.  
  • The word is in the middle of a global slowdown and we are in the middle of what this means for the United States.
  • The trade war is causing  a natural flight to safety driving US rates lower.
  • US  consumer looks pretty good.  
  • Will not prejudge Spe meeting.
  • Has an eye on lower inflation expectations.
  • Will not mind if inflation moves higher than 2%
  • Fed does not need to take inter-meeting action.  
  • Some of recent mkt downdraft could be ‘overdone’ given us data.

About Bullard

James  Bullard  is the president and CEO of the  Federal  Reserve Bank of St. Louis. In this role, he oversees the activities of the Eighth  Federal  Reserve District. He also participates on the  Federal  Open Market Committee, or FOMC, which sets the direction of U.S. monetary policy.

Fx implications:  

These are risk-off comments which should be supportive of the Yen and weigh on the greenback to some extent, although much of this doom and gloom is already priced in, considering the expectations of an easing bias at the Fed.