More from Bullard
- Fed acted appropriately to repo market strain
- Inverted yield curve a sign Fed rates should be lower
I got back and forth on the yield curve. It's been a great predictor but this is a globalized economy unlike any before and we're starting with the front end longer then ever before. I'm sympathetic to the argument that European and Japanese rates are pushing down Treasury yields.
I appreciate Bullard's view but 'cut rates because the bond market says so' is a bit too mechanical for me. I'm more inclined towards 'cut rates because there's no inflation'.
