February 21, 2020
St. Louis Fed President James Bullard shared his views on the U.S. economic outlook and the potential impact of the coronavirus outbreak on the U.S. economy with CNBC’s Squawk Box. Bullard also spoke about the Fed’s purchases of Treasury bills in recent months and the Eighth Federal Reserve District’s economy, among other topics.
In addressing market expectations for future policy rate cuts, Bullard noted that there is a high probability that the coronavirus outbreak will be a temporary shock but a low probability that it could get much worse. He added that financial markets have to price that in. “But if this all goes away, then I expect that pricing will come back out of the market, and that we’ll be back to this on-hold Fed scenario,” he said.
He also reiterated his view that a lot of the news on the U.S. economy in the last couple of months has been good and that the U.S. economy is in good shape for a soft landing.
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