Bullard - inflation will slow markedly this year, allowing lower Fed interest rates ...Middle East

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Bullard - inflation will slow markedly this year, allowing lower Fed interest rates

Former St. Louis Federal President James Bullard spoke with Dow Jones / Market Watch (gated).

In brief ICYMI:

    Bullard predicts core PCE inflation will drop to 2.3% by the end of 2025, down from 2.8% at the end of last year. Inflation is expected to continue declining toward the 2% target but remain slightly above it. The Fed has managed to reduce post-pandemic inflation without causing a recession. Monetary policy is now in a fine-tuning phase. As markets recognised the Fed's success, they adjusted bond prices and helped un-invert the Treasury yield curve. The Fed appears on track for two more 0.25% rate cuts in 2025. A rate cut in March seems unlikely, with a cut more probable later in the spring. This article was written by Eamonn Sheridan at www.forexlive.com.

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