Dollar Dumps After Fed's Bullard Suggests Rate-Cuts "Soon"

Update: The Bullard bounce has been destroyed by AAPL's tumble after a Reuters reports that the Justice Dept. has been given jurisdiction over it for a potential probe as part of broad tech company review...

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And just like that, The Fed Put is secure again...

St.Louis Fed head Jim Bullard unleashed the beast this morning in a Q&A but daring to admit that a rate-cut may be warranted soon to lift inflation.

A downward policy rate adjustment may be warranted soon to help re-center inflation and inflation expectations at target and also to provide some insurance in case of a sharper-than-expected slowdown...

The direct effects of trade restrictions on the U.S. economy are relatively small, but the effects through global financial markets may be larger...

“Even if the sharper-than-expected slowdown does not materialize, a rate cut would only mean that inflation and inflation expectations return to target more rapidly."

Having rallied up to unchanged at the open, before plunging, US stocks are ramping off the lows...

And the dollar is getting dumped...

Bullard’s comments mark the first time a Fed official has publicly suggested the need for a rate cut since the central bank put rates on hold in January, according to Bloomberg.

And do not forget that the market is already priced for 3 rate cuts before the end of 2020...

But, what Mr. Bullards seems to forget is that the last three recessions all took place with 3 months of the first rate cut after a hiking cycle!