MNI POLICY: Fed's Bullard: Global Trade Narrative Has Darkened

By Jean Yung

     WASHINGTON (MNI) - The narrative on global trade has darkened in recent

days, driving Federal Reserve Bank of St. Louis President Jim Bullard's call for

lowering interest rates soon, he told reporters Monday. 

     "It's the global trade regime uncertainty," he said, adding he previously

thought trade issues would get resolved over the medium term, but recent reports

suggest "trade deals are not around the corner." 

     He declined to give further details on how the Fed should loosen policy,

including the timing and magnitude of rate cuts. 

     "I'm anxious to see how my colleagues interpret the incoming data" at the

June FOMC meeting, he said. "There is already a case on the table to cut because

inflation is too low ... the current downturn suggests we could also take some

insurance against slower growth." 

     The next FOMC meeting is scheduled for June 18-19.

--MNI Washington Bureau; +1 202-371-2121; email: jean.yung@marketnews.com

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