Former Fed 'Hawk': More Concerned About the Economy Than Inflation, Fed to Maintain Wait-and-See Approach Until at Least the Second Half of the Year

BlockBeats News, May 14th, Former St. Louis Fed President Bullard stated in an interview that "the Trump administration was able to reach a trade deal before causing irreversible damage to the U.S. economy. In the 2018-2019 trade war, we saw the U.S. economy slow down. Economic growth slowdown is typically somewhat associated with a decrease in the inflation rate. So we will not see as high an inflation rate as originally expected. I have always been against the inflation narrative surrounding tariffs."

"Currently, we cannot say that we are in an economic recession, but the main concern is how the situation will develop in the second quarter, third quarter, and towards the end of the year. Regarding interest rate cuts, it seems that the Fed will at least wait and see until the latter half of this year. This will largely depend on the specific developments in the trade war." (FXStreet)