Central Banks

Fed’s Bullard: I dissented Fed decision because a 50 bps rate cut was more appropriate

St Louis Fed president James Bullard issues his statement on the dissent

  • There are signs US growth will slow in the near horizon
  • The manufacturing sector appears to be in a recession
  • Dissent also prompted by inverted yield curve as well as low inflation
  • Says a 50 bps rate cut would provide insurance against slowing economy
  • It would also promote a more rapid return of inflation and inflation expectations

ForexLive

Nothing out of the ordinary from Bullard as he is the most dovish member among the voting committee this year. The full statement can be found here.

There are two other dissenters to the decision on Wednesday, namely Esther George and Eric Rosengren – both also dissented in July – as they viewed that the Fed should have kept rates unchanged again this month. Expect to hear statements from them as well.

Articles You May Like

Forex | How to Journal your trades for Consistent profits
FX option expiries for Wednesday October 16 at the 10am NY cut
Today’s Brexit trade goes beyond GBP
BOJ’s Kuroda says that central bank has various means to ease policy
Forex Trading Traps To Avoid (in Your 1st Year of Trading)

Leave a Reply

Your email address will not be published. Required fields are marked *