MNI PODCAST: FedSpeak-Bullard Sees Three Rate Cuts In 2024

EXECUTIVE SUMMARY

• Ex-St. Louis Fed President James Bullard tells MNI three rate cuts for 2024 is consistent with a soft landing.
• He thinks markets are going too far by pricing in as many as six rate reductions next year, in part because some investors are still counting on a recession.
• Bullard said March is too soon for the Fed to begin cutting rates: “I just don’t think there’ll be enough information at hand to really make that kind of a decision because once you move you’re going to be very reluctant to go back in the other direction. So you probably want inflation to come down precipitously even from where it is today, certainly with a two-handle, maybe even two-and-a-half is where you’d want to be when you start this process.”