Comments from Bullard on Fox Business:
- The world is in the middle of a global slowdown, we're assessing what it means for the US
- Will wait and see on 2s10s inversion, would need to be a sustained inversion
- US consumer looks pretty good
- TIPS implied inflation too low
- Wants to hit Fed inflation target and would not mind if inflation moves higher than 2%
- Fed doesn't need to take inter-meeting action
- Some of the market moves might be overdone given US data
- Data looks good but monetary policy must be forward looking
- Stock market is still up this year and a re-pricing might have been expected
- Fundamentally the labor market is good and growth is reasonable
He doesn't get too deep into monetary policy here. Previously, however, he was a bit more explicit that he didn't think it was time for another cut. He's omitted that (at least so far).
Here were Bullard's comments from Aug 6:
- Fed has already 'done quite a bit' for economy
- Rates are "in the right neighbourhood" but will watch how economy reacts
- Will watch how economy reacts to trade war before deciding on next move
- Said he had 'penciled in' another rate cut for this year
He hasn't hit any of those notes.
Now with more:
- Fundamentals of the US economy are pretty good
- We can get through this if we play our cards right
- Data looks good but policy must be forward looking