The interest rate cut bond markets have been betting on from the US Federal Reserve could be "warranted soon", according to St Louis Fed president James Bullard.
Bullard noted many potential motivations for the cut, with trade tensions, slowing global growth, persistently low inflation and the move from the US Treasury curve towards inversion. While he noted that the direct impact of trade restrictions on the US economy may be "relatively small", "the effects through the financial markets may be larger", reported Bloomberg. Investors seek fixed income and money market funds amid heightened risk aversion In a speech in Chicago on Monday, Bullard added: "The FOMC faces an economy that is expected to grow more slowly going forward, with some r...
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