St. Louis Fed President Bullard, who voiced his opposition against a 50 basis points rate cut back in late June, recently crossed the wires saying that he wouldn’t want to prejudge Fed’s July decision. Bullard further stated there was a lot of uncertainty and ‘shocks out there’ hitting the U.S. economy. Below are some key comments from Bullard, per Reuters.
“Fed must focus on recentering inflation and inflation expectations on 2%.”
“Every real estate person, most politicians want lower rates.”
“Fed has been doing well meeting mandates for full employment, low and stable inflation.”
“Fed has made some ‘awfully good calls’ on policy.”
“It doesn’t bother him to have some ‘input’ from politicians.”
“Risk is that U.S. growth will slow more sharply than expected.”
“Would like to take out some ‘insurance’ against sharper U.S. slowdown.”
The US Dollar Index, which fell sharply amid the cautious tone in Chairman Powell’s testimony today, seems to be ignoring these remarks and was last down 0.4% on the day at 97.10.