Fed's Bullard speaks to reporters
- Fed action already preemptive toward negative shocks
- he is an advocate for a standing Fed repo facility
- we should expect US job growth is slow down
- Fed's 3 rate cuts provide insurance for economy
- it makes sense to wait and see how economy reacts to cuts
- yield curve signals Fed policy is now in better place
- is optimistic for a pickup in productivity growth
- Fed can reconsider whether to take back recent insurance rate cuts if and when business adjust to new trade landscape
- forecast 2% or better US growth in coming periods
- now hopes we can get a bit better growth due to rate cuts. Hopes productivity improvements might push growth above 2%
Bullard is a voting member in 2019, but with only one meeting left and his position of waiting and seeing how the economy reacts to the cuts (which is the concensus), his vote will not be in play until a few years down the line (2022 unless he becomes a permanent member of the FOMC).
