Fed Could Cut Interest Rates to Meet Inflation Target: St. Louis Fed President Bullard

St. Louis Fed President James Bullard stated that if inflation weakens in the US, the Fed could consider a rate cut

Fed's inflation targets

In an address at the Foreign Correspondents’ Club (FCC) in Hong Kong, St. Louis Fed President James Bullard stated that if inflation weakens in the US, the Fed could consider a rate cut despite the economy continuing to grow.

In May, the Fed had chosen to maintain interest rates. Fed Chair Powell had indicated that there was no factor influencing the central bank to consider either a rate hike or a rate cut at the time.

However, to keep inflation in line with the Fed’s target, even if the economic performance continues to maintain a positive momentum, a rate cut could be an attractive option, according to Bullard.

Bullard also expressed concerns about the ongoing trade war with China, stating that a failure to come to an agreement could change global trade in the medium term.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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