Fed's Bullard warned against more rate hikes
Fed's Bullard warned against more rate hikes in a WSJ interview. Bullard has been a noted dove, but he is a voter this year, giving view a little more weight. "Analysts've got a good level of the policy rate today," he noted. He is optimistic on growth with a forecast of 2.25% to 2.5% for this year. And he argued that with no real inflation threat, there isn't much reason to push rates higher. He has been worried about the implications of curve inversions and noted the financial markets' negative reaction to those implications too. "Analysts have already been preemptive," he added, and said the Fed is "bordering on going too far and possibly tipping the economy into recession." Interestingly, he said "In the last decade, the market has been far more accurate than the committee itself in saying how policy was going to evolve going forward." He is not looking for a rate cut as the next move, but wouldn't rule it out.