In a prepared speech at a London Conference, St. Louis Fed President James Bullard warned “a sharper-than-expected slowdown could materialize in the quarters ahead.” “Trade policy uncertainty creates a disincentive for global investment. Accordingly, the global growth environment looks weaker in recent quarters,” he said, adding, “Slower global growth may feed back into slower growth in the U.S.”
And, that “may make it more difficult for the Federal Open Market Committee (FOMC) to achieve its 2% inflation target.” He added “the FOMC may choose to provide additional accommodation going forward, but decisions will be made on a meeting-by-meeting basis”. .
