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Fed’s Bullard: ‘More normal’ yield curve bullish sign for 2020

“Key measures of the U.S. Treasury yield curve have now returned to a more normal, positive slope, possibly a bullish factor for 2020.”” writes Midwest Communications Inc for 95kqds.com. That policy shift, he said, appears to be taking hold, with the change in the shape of the yield curve a main bit of evidence.LOUISVILLE, Ky. (Reuters) – The reaction of U.S. bond markets to recent Federal Reserve interest rate cuts could be a “bullish” factor for the economy next year, St.The Fed has reduced interest rates three times this year,…

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Fed’s Bullard: Sharper-than-expected economic slowdown is ‘key risk’

“This slower growth may feed back into slower growth in the U.S., he said” writes Senior Economics Reporter for marketwatch.com. The “key risk” facing the U.S. economy is a sharper-than-expected slowdown, despite the Fed’s recent interest-rate easing, said St.Louis Fed President James Bullard Thursday. “It remains possible that a sharper-than-expected slowdown could materialize in the quarters ahead,” Bullard said, in a speech to the Rotary Club of Louisville.Bullard said the U.S. economy has already been slowing down this year after relatively rapid growth over 2017 and 2018. Source: marketwatch.com

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St. Louis Fed president: US economy could see ‘sharper-than-expected slowdown’

“Louis Federal Reserve warned Tuesday that the U.S. economy could see a sharper slowdown than expected in the coming months” reports washingtonexaminer.com. That uncertainty, Bullard said, “Creates a disincentive for global investment.” “Slower global growth may feed back into slower growth in the U.S.,” he said.Louis, said risks facing the economy include uncertainty over global trade policy and the slowing of the global economy. “U.S. monetary policy cannot reasonably react to the day-to-day give and take of trade negotiations,” Bullard said Tuesday during a presentation at a conference in London,…

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Bullard says Pandora’s box has been opened on trade that will take a long time to resolve

“Louis Fed President James Bullard said markets may be too optimistic on the time it takes to reach trade deals” writes European Markets Editor for marketwatch.com. “Markets have had this idea that trade resolution was just around the corner,” he said.On the issue of soft versus hard economic data, he acknowledged that consumption data has been solid but said that was “backwards looking.”.  Source: marketwatch.com

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Fed’s Bullard says ignoring the Treasury yield curve has burned him in the past

“Asked by MarketWatch, he declined to quantify a probability of recession and acknowledged that most estimates of them are based off the yield curve” writes European Markets Editor for marketwatch.com. There are a lot of valid reasons why the inversion of the U.S. Treasury yield curve — that is, the yield of short-term bonds being higher than that of longer-term securities — isn’t a sign of economic worries.Bullard, at a conference on monetary and financial policy in London, replied that he was burned twice as a Fed staffer in the…

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Fed’s Bullard, explaining dissent, says U.S. manufacturing appears ‘in recession’

“WASHINGTON (Reuters) – The U.S. manufacturing sector “already appears in recession” and overall economic growth is expected to slow “in the near horizon,” St” writes Midwest Communications Inc for 95kqds.com. “It is prudent risk management, in my view, to cut the policy rate aggressively now and then later increase it should the downside risks not materialize.”.  Source: 95kqds.com

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Fed’s Bullard says economy is slowing down but doesn’t see recession

“Louis Fed President James Bullard said Thursday he thinks the economy is slowing but he’s not too worried about the risk of a recession” writes Senior Economics Reporter for marketwatch.com. “It does seem the economy is slowing down some – not terribly – but some,” Bullard said in an interview on CNBC. Bullard said he expects the economy to slow to a 2.25% annual rate this year from 3% in 2018.”I think you’d have to see some inflation decline or inflation expectations decline…possibly with some economic weakness to get a…

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Fed’s Bullard: Rate hikes, balance sheet reduction ‘coming to an end’

“Bullard said he expects a timetable for balance sheet program to be revealed “in the next couple of months.”” writes Jeff Cox for cnbc.com. The Federal Reserve is likely near the end of interest rate increases and the program to reduce the bonds it holds on its balance sheet, St. “That’s going to mean a bigger balance sheet, that’s for sure,” he said.While U.S. interest rates are low historically, they’re actually high compared to the rest of the word, Bullard said.”I actually think we’re a little bit tight here, a…

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Fed shifts to Jim Bullard’s world after new interest-rate, balance sheet strategy

“And Minneapolis President Neel Kashkari has been another consistent dovish voice on the central bank since he joined in 2016” writes Senior Economics Reporter for marketwatch.com. He also said the central bank should admit it doesn’t know where a “neutral” level of interest rates is.This majority consisted of hawks allied with more traditionally dovish Fed officials — like Boston Fed President Eric Rosengren — who were worried about possible asset bubbles caused by low interest rates.The central bank dropped its guidance that more interest rate increases were likely, suggesting the…

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Fed can ‘wait and see’ and react to surprises in either direction, Bullard says

“The Federal Reserve can wait and see how the economy develops and react in either direction to any surprises in the economy, St” writes Senior Economics Reporter for marketwatch.com. In an interview on CNBC, Bullard said he hopes the central bank is out of the game of penciling in further rate hikes.Bullard, who is a voting member of the Fed’s interest-rate committee, has long advocated for the central bank to hold off more rate hikes.Bullard said there is “noise” in the January jobs report and jobs growth is a backward…

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