Fed Should Resume Gradual Rate Cuts, Says St. Louis Fed President
AI Summary:
According to PANews, the Financial Times reported that St. Louis Federal Reserve President James Bullard has suggested that the Federal Reserve should return to a gradual approach to rate cuts after a significant 50 basis point reduction earlier this month. Bullard believes that the U.S. economy could respond very positively to a more accommodative financial environment, which could, in turn, extend the time needed for the Fed to bring inflation down to its 2% target. He emphasized the importance of easing policy restrictions gradually at this stage. Bullard is among the officials who anticipate a rate cut of more than 25 basis points for the remainder of the year, as indicated by the forecasts released during this month's meeting.
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