A past dove is now neutral
The St. Louis Pres. James Bullard in an article from the Wall Street Journal says that he sees no reason for changing rates in 2020. Bullard has been a leading dove but his view has skewed back toward the consensus after the 3 cuts in 2019.
- Considers no cuts appropriate in this environment
- the Fed made a fairly big adjustment in policy during 2019
- we should wait-and-see what the effects are in 2020 and see how the data come in
- sees a pretty high bar to changing monetary policy
- trade uncertainties are waning and firms are learning to operate in an unsettled environment
- the Fed takes a positive signal from the fact that the yield curve has returned to a more normal upward sloping shape
Bullard is not a voting member in 2020. You can read the article by clicking HERE
