Fed dove Bullard said policy is "considerably" more accommodative
Fed dove Bullard said policy is "considerably" more accommodative than it was late last year, and the rate cuts have helped more than the 3 cuts would suggest. The Fed's actions late last year and in early 2019, shifting the stance away from expectations for several rate hikes this year and dovish guidance. Trading uncertainties and the slowing in global growth are weighing on the outlook for an otherwise solid economy, he added, and the downside risks could create a sharper slowing than expected. Interestingly, he thinks trade uncertainties will be persistent, and he doesn't expect the uncertainty "to dissipate in the quarters or years ahead." The Fed's insurance rate cuts may help re-center inflation and inflation expectations at the 2% level sooner than otherwise. After fearing the implications of the inverted yield curve, he's now more optimistic and that the return to a more normal, positive slope is bullish for 2020 growth.