St. Louis Fed President James Bullard said in a CNBC interview that Fed’s monetary policy seems “a little tight”. Though, he wasn’t pushing for a change in monetary policy yet. Bullard said he’s willing to be patient for now.
Also, lowered expectation of future short-term rate path has brought down 10-year yield. Bullard said “you’ve got to wait and see how big an impact this has on the economy.”
So far Bullard, said slowdown won’t be as bad as expected. GDP growth could decelerate only to around 2.5% this year, which is stronger than earlier forecasts of 2.0%. Bullard admitted there is upside potential too.
