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St. Louis Federal Reserve head James Bullard spoke on BloombergTV earlier, delivering a measured warning about inflation expectations and trade difficulties.

Bullard stated that trade talks are creating uncertainty for the US economy, and that it’s difficult to see if much will change after the talks (NAFTA, China, North Korea, etc.) finish. The Fed is also concerned about the rise of Euro-sceptic parties in Italy, but it doesn’t appear to be reaching crisis levels.

Bullard also noted that the Fed is already at a neutral interest rate, and should be very careful it doesn’t enter a restrictive mode, although Bullard pointed out that inflation would have to surprise to the outside for rates to go higher, and the threat of yield curve inversion must be taken seriously.