President and chief executive of the Federal Reserve Bank of St. Louis James Bullard speaks during an interview on Aug. 6.
Heather Long August 6 at 1:48 PMAs the U.S.-China trade war heightens, President Trump and Wall Street are calling on the Federal Reserve to cut interest rates further to help boost the economy.
“While additional policy action may be desirable, the long and variable lags in the effects of monetary policy suggest that the effects of previous actions are only now beginning to impact macroeconomic outcomes,” said James Bullard, president of the St. Louis Fed, at a speech to the National Economists Club in Washington, D.C.
“You are not in recession mode here,” he said, stressing that the Fed has already made a “sea change” in policy in the past year that is helping aid the economy.
Wall Street is pricing interest rate cuts in September, December and January.
Bullard dismissed that call, saying the Fed cannot save the economy from the daily gyrations and uncertainty from the trade war.
- Bullard Says Fed Can't Respond to Day-to-Day Trade TurmoilBloomberg
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- After Rate Cut, Trade Headwinds Complicate Outlook for Fed OfficialsWall Street Journal
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- The Bond Market Has a Message for the Fed: You're Not in Charge AnymoreFortune
- Fed's Bullard: Let's see what the rate cut did before approving moreCNBC
- Bullard: Fed Has Adapted to Trade Risks, Won't Respond to 'Tit-For-Tat'U.S. News & World Report
- Goldman Sachs predicts the Fed will do something thought unthinkable just a month agoBusiness Insider
- Fed's Bullard says he has one more interest-rate cut 'penciled in' this yearMarketWatch