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Investing.com -- Former Federal Reserve official James Bullard expressed optimism about the U.S. economy on Thursday, citing deregulation as a positive factor.
Speaking on Fox Business, Bullard revealed he has spoken with Scott Bessent about the Federal Reserve Chair position and aims to interview with him after Labor Day.
Bullard stated that interest rates "are high right now" and suggested the Fed could cut rates by 100 basis points into 2026. He added that the central bank could implement further cuts in 2026 depending on incoming economic data.
The former Fed official also emphasized that the Federal Reserve must be mindful of protecting the U.S. dollar’s reserve currency status. Regarding U.S. debt, Bullard characterized it as reflecting "a spending problem."
When asked about political commentary on monetary policy, Bullard noted that "politicians comment on monetary policy all the time."
Looking ahead to the Fed’s next meeting, Bullard expressed confidence in a rate cut, stating "I do think they’ll cut in September," while adding that the recently released Fed minutes are now stale.
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