Fed Should Resume Gradual Rate Cuts, Says St. Louis Fed President

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.