Bullard: Fed needs to cut rates by 50BP if it's doing it too slowly

Former Fed official Bullard said he expects the Fed to start cutting rates before inflation reaches 2%. Bullard predicted that core inflation, which excludes food and energy prices, will slow to around 2% by October, and PCE will fall to 2.6% in November. In an interview, Bullard said the Fed doesn't want to go into the second half of the year with inflation already at 2% when they haven't changed policy. If inflation is between 2% and 2.5%, but the Fed has not yet adjusted the policy rate, then they may have to act aggressively, such as cutting rates by 50 basis points at a meeting, and that will be a difficult thing to do.