Fed's Bullard says a "robust debate" is coming over steep rate cut
(Adds comments on debate over 50 basis point cut)
Aug 23 (Reuters) - Federal Reserve policymakers will have a
"robust debate" about cutting U.S. interest rates by a half
percentage point at their next policy meeting in September, St.
Louis Federal Reserve Bank President James Bullard said on
The Fed cut rates by a quarter point at its July policy
review although the minutes of that meeting showed a couple OF
policymakers favored a 50 basis point reduction.
Bullard said there would be a hardy discussion about a steep
cut next month.
"I think there will be a robust debate about 50," he said in
an interview with Bloomberg TV. "I think it's creeping onto the
Bullard said a key reason for further rate cuts is the
Treasury yield curve, which recently inverted again.
"The yield curve is inverted here. We've got one of the
higher rates on the yield curve here. That's not a good place to
be," Bullard told CNBC in a separate interview.
Bullard had said last week that he was not ready to commit
to reducing rates at the Fed's upcoming Sept. 17-18 meeting.
(Reporting by Jason Lange in Washington and Kanishka Singh in
Editing by Chizu Nomiyama)
First Published: 2019-08-23 14:02:37
Updated 2019-08-23 14:30:21
© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.