Economics
Fed's Bullard Says Quarter-Point Cut Is Enough for ‘Insurance’
- Bigger reduction would be ‘overdone,’ Bullard tells Bloomberg
- Stocks fall, dollar gains on pared bets for a half-point cut
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Federal Reserve Bank of St. Louis President James Bullard said an “insurance cut” of 25 basis points to interest rates would be enough to protect against a sharper-than-expected slowdown in economic growth.
“I think 50 basis points would be overdone,’’ Bullard said in an interview with Bloomberg Television’s Kathleen Hays from the bank’s headquarters. “I don’t think the situation really calls for that. But I would be willing to go 25.’’