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
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.