Bullard adds that stock market sell off.........>

FED: Bullard adds that stock market sell off following rate cut was "buy the

rumour, sell the news" and there was a decent run-up in equities due to the G7

FinMin & CB call.

- When asked why cut rates now when outbreak is yet to really bite - aren't you

throwing away MonPol ammo?

Bullard responds: Long-term decisions are made concerning interest rates, cites

home computer purchases etc, cites lag in policy response.

- On 10y yields below 1%, Bullard says thinks markets have become worried on

global pandemic. Flight to safety into the US. Will have to wait and see how

virus progresses but thinks a lot of cases will turn out mild as appears to have

happened in China.

Q: If bond yields already so low, why do Fed need to cut rates?

- A: Moving policy rate to appropriate level although market has done a lot of

the work for us.