- St. Louis Fed president Bullard says the "Pandora's box" of trade is very hard to resolve
Market news
15 October 2019
St. Louis Fed president Bullard says the "Pandora's box" of trade is very hard to resolve
- Says zero rates, forward guidance, QE still in the playbook for "ordinary recession"
- Says Fed repo facility is a sensible endgame to control rates
- Defends that bill purchases are "definitely not" QE
- Says that must consider additional rate cut insurance but he does not want to pre-judge the next Fed meeting
- Adds he is not a fan of negative interest rates
- Decisions on future cuts will be meeting-by-meeting
- Says trade policy uncertainty factors into calculation
- Recent yield curve inversion was a warning sign
- Sees risk of inflation staying too low
- Sees risk of sharper-than-expected economic slowdown
- Could reverse rate cuts in 2020, 2021 if economy improves again
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