Bullard Says Markets Are Expecting More Easing From Fed

September 23, 2019 Share Print 0

The Federal Reserve’s policy shift since last year has made monetary policy “considerably more accommodative” than a year ago, but world markets are likely expecting more to come, St. Louis Federal Reserve bank president James Bullard said on Monday.

Bullard, who has focused on the fact that some short-term Treasury debt yields have risen above long-term bond yields in what is sometimes seen as a sign of coming recession, noted that for now the bond “yield curve” look more normal.

But that is “likely because markets are anticipating future policy moves” by the Fed, Bullard said.

The Fed has cut rates twice this year, lowering its target rate to a range of between 1.75% and 2.00% at its last meeting. Top officials say they will now make decisions on a “meeting by meeting” basis, with no clear commitment to further reductions.

Via Reuters

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.