Economics
Fed’s Bullard Says a Rate Cut May Be Needed ‘Soon’
- St. Louis Fed chief says trade war poses risk to U.S. economy
- Bullard says yield curve may signal Fed policy is too tight
This article is for subscribers only.
The Federal Reserve may need to cut interest rates soon to prop up inflation and counter downside economic risks from an escalating trade war, St. Louis Fed President James Bullard said.
“A downward policy rate adjustment may be warranted soon to help re-center inflation and inflation expectations at target and also to provide some insurance in case of a sharper-than-expected slowdown," Bullard said Monday in remarks prepared for a talk in Chicago. “The direct effects of trade restrictions on the U.S. economy are relatively small, but the effects through global financial markets may be larger."