Former St. Louis Fed President James Bullard thinks the Fed is about to start cutting interest rates. He says the Fed’s efforts to control inflation over the past two years have been successful without hurting the economy.
Bullard expects the Fed to cut rates by 0.25% in September. He also predicts they’ll cut rates by the same amount in November and December.
He believes the economy has successfully avoided a recession, achieving what’s called a “soft landing.” This means the economy slowed down enough to control inflation, but didn’t completely crash.
Bullard says the Fed might pause on rate cuts if there’s surprising economic data. For example, if the job market looks really strong, the Fed might reconsider cutting rates in November.
According to market analysts, there’s a good chance the Fed will cut rates in September. They say there’s a 59% chance of a 0.25% cut and a 41% chance of a 0.5% cut.
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