Fed's Bullard remains worried about low inflation and downside risks to the economy
Fed's Bullard remains worried about low inflation and downside risks to the economy, and wants to take out more insurance -- and if nothing happens, take it back. He was speaking in a CNBC interview. He believes lowering rates would help hit the inflation target. The Fed hasn't hit its target in 7 years. And the TIPS market isn't giving him a lot of confidence. Meanwhile, the labor market has been doing well with retail sales very good. But the global manufacturing contraction is a concern. The trade war is a concern but it's impacting countries outside of the U.S. more, though there are feedback loops. He noted the inverted yield curve and said that's not a good place to be. He does not see a financial bubble on the scale of the housing crisis. Lowering interest rates aren't going to solve all the economy's problems, but the Fed works on the margin he noted.