Fed voters Rosengren and Bullard showed the conflicting views on the FOMC
Fed voters Rosengren and Bullard showed the conflicting views on the FOMC. The dovish Bullard said a 50 bp easing would get ahead of market expectations as the trade war has become a broader "reckoning" to the global economy and creates a global shock. On the other had, the hawk (and dissenter) Rosengren said no immediate rate action is necessary as long as the economy stays on track, in a speech today. Risks are elevated, he acknowledge, but have yet to become a reality. The U.S. remain resilient thanks to the strong labor market and modestly rising wages. He didn't believe the markets were signaling a recession, rather the curve inversion has resulted from money flooding into the 10-year Treasury and away from the negative yields elsewhere in Japan and Europe. And recession risks don't seem to be reflected in stock prices. He expects growth at around 2%. Were risks to materialize, it would be appropriate to ease "aggressively."