March 4, 2020
St. Louis Fed President James Bullard spoke about recent monetary policy and the U.S. economic outlook during an interview with Bloomberg. He discussed the FOMC’s Tuesday reduction of the policy rate by half a percentage point, two weeks before the committee’s regularly scheduled meeting set for March 17-18. “The downside risks have increased [due to the coronavirus], so we want to take that on board and get some insurance to make sure we can keep the expansion going as we deal with this temporary virus,” Bullard said.
“I also think that we got the policy rate to the right place for now, given the information that we have now,” he said.
In the interview with Kathleen Hays on Bloomberg Markets: European Close, Bullard said his base case was that the U.S. economy will do well this year, and that the fundamentals are good.
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