St. Louis Fed President James Bullard urged caution on further rate hike in near term in a presentation at a seminar in Tokyo.
And he laid out three reasons for discussions.
First, market-based inflation expectations in the U.S. remain somewhat low.
Second, the current level of the policy rate appears to be neutral, meaning it is putting neither upward nor downward pressure on inflation.
Third, the U.S. nominal yield curve could invert later this year or in 2019, which would be a bearish signal for U.S. macroeconomic prospects,.
