St. Louis Fed President James Bullard
St. Louis Fed President James Bullard said Friday he would support more interest rate cuts after the Federal Reserve cut its policy rate on July 31 for the first time in a decade. “We should get lower here,” Bullard said on CNBC. “The yield curve is inverted. We’ve got one of the higher rates on the whole yield curve. That is not a good place to be,” he said. Bullard said rate cuts would be insurance against slower-than-expected economic growth. “How much risk are we facing from the fact that we’ve got a global manufacturing contraction going on and possibly more to come?” he asked. “I’d like to take out more insurance against that downside risk,” he said. If the risks “blows over,” the Fed can take back the easing steps next year, he said. Fed Chairman Jerome Powell will speak later Friday in Jackson Hole Friday. The Fed is clearly split on the road ahead. Three Fed officials, including two voting members, have suggested they want the Fed to pause and wait and see how the economy evolves before cutting rates again. Read:
rose by almost 300 points over the past two days.