Bullard says Fed may need to cut rates ‘soon’
Market-implied probability of a cut in September now above 80%
The Federal Reserve is moving closer to a reversal of its monetary policy stance, as policy-maker James Bullard indicated a rate cut “may be warranted soon” in remarks on June 3.
The St Louis Fed president – currently a voting member of the Federal Open Market Committee – said the FOMC “faces an economy that is expected to grow more slowly going forward”, while both inflation and inflation expectations “remain below target”.
Bullard added that “signals from the Treasury yield curve” appear to
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