Fed dove, and dissenter Bullard doesn't believe a 50 bp easing is necessary right now
Fed dove, and dissenter Bullard doesn't believe a 50 bp easing is necessary right now, in a Bloomberg interview. It would be "overdone." That's taken some of the starch out of the Treasury market's gains today. But he does think it's a good time for a rate cut, and he added that holding rates unchanged this month puts a really high probability on a July easing. Both Q2 and Q3 growth look slower, but he's hopeful that if the FOMC were to act, the yield curve could get back to normal and the risk of a recession would diminish. He doesn't see much risk of being too dovish currently. The wi 2-year yield has cheapened and is 1 bp higher at 1.710% and the gyrations just ahead of the auction is likely to make for a poor sale. Note that the markets will be cautious with Chair Powell due up shortly.