fastFT Federal Reserve
Lower rates could be necessary if inflation remains below target, Bullard says
© Bloomberg
Matthew Rocco in New York MAY 3, 2019
Federal Reserve officials suggested on Friday that the US central bank could move to
lower interest rates later this year if inflation growth remains soft.
St Louis Fed President James Bullard, a voting member of the central bank's policy committee, said he "certainly would be open to a cut" should inflation continue to fall short of expectations after the summer.
"I am open to a rate cut to try to combat this — but it would be a rate cut not because of bad data on the US economy — it would be a rate cut because we want to make sure that inflation expectations and eventually actual inflation is more consistent with our 2 per cent target," Mr Bullard told Reuters.
In a separate interview with CNBC, Mr Bullard said now isn't the time for a cut but called current rates "a little bit tight".
Chicago Fed head Charles Evans also acknowledged that lowering the benchmark fed funds rate may be called for "if activity softens more than expected or if inflation and inflation expectations continue to run too low", he said in prepared remarks made in Stockholm.
https://www.ft.com/content/0894c4ec-6dc2-11e9-a9a5-351eeaef6d84 05/05/19, 16=03 Pagina 1 di 3
Fabrizio
Lower rates could be necessary if inflation remains below target, Bullard says
© Bloomberg
Matthew Rocco in New York MAY 3, 2019
Federal Reserve officials suggested on Friday that the US central bank could move to
lower interest rates later this year if inflation growth remains soft.
St Louis Fed President James Bullard, a voting member of the central bank's policy committee, said he "certainly would be open to a cut" should inflation continue to fall short of expectations after the summer.
"I am open to a rate cut to try to combat this — but it would be a rate cut not because of bad data on the US economy — it would be a rate cut because we want to make sure that inflation expectations and eventually actual inflation is more consistent with our 2 per cent target," Mr Bullard told Reuters.
In a separate interview with CNBC, Mr Bullard said now isn't the time for a cut but called current rates "a little bit tight".
Chicago Fed head Charles Evans also acknowledged that lowering the benchmark fed funds rate may be called for "if activity softens more than expected or if inflation and inflation expectations continue to run too low", he said in prepared remarks made in Stockholm.
https://www.ft.com/content/0894c4ec-6dc2-11e9-a9a5-351eeaef6d84 05/05/19, 16=03 Pagina 1 di 3
Fabrizio
Commenti
Posta un commento