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MNI INTERVIEW: Fed Set For One Or Two Cuts This Year - Bullard

Former St. Louis Fed chief discusses the U.S. economic outlook ahead of the June FOMC meeting.

The Federal Reserve is likely looking at just one or two rate cuts this year, down from the three it projected in March, after slower-than-expected progress in lowering inflation in the first quarter, former Federal Reserve Bank of St. Louis President James Bullard told MNI.

But, while acknowledging that a hot May jobs report further vindicates arguments for staying higher for longer, especially as growth has also stayed sturdy, Bullard insisted that lowering benchmark interest rates slightly would help set up the economy for rapid growth as inflation returns to target over time.

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The Federal Reserve is likely looking at just one or two rate cuts this year, down from the three it projected in March, after slower-than-expected progress in lowering inflation in the first quarter, former Federal Reserve Bank of St. Louis President James Bullard told MNI.

But, while acknowledging that a hot May jobs report further vindicates arguments for staying higher for longer, especially as growth has also stayed sturdy, Bullard insisted that lowering benchmark interest rates slightly would help set up the economy for rapid growth as inflation returns to target over time.

Keep reading...Show less