Bullard on Rate Cut and Possibly Becoming Fed Chair

Considering the shape the United States economy is in, do we need a 50 basis point rate cut at the next meeting? I said 100 basis points over the next as we go into 2026. So I think we could get started on that path. I think 50 sounds panicky. Sounds like the administration wouldn't be that confident in their economic program, which I don't think is the right stance to take. I think they've got a pro-business program that will fire up the economy after we get through the initial phase of the new tariff policies, which is slowing down the global economy. But eventually we'll have very strong growth in the US economy. And monetary policy has to be looking ahead and anticipating that. I do think the policy rate's high, but the committee is going to probably lower September here. You could speed up the pace of a reduction if the data cooperates as we go through the rest of the year and into 2026.

Well, I just think you would want to be as neutral if you felt inflation was coming down to 2%. That's why I have suggested that we can get 100 basis points lower. But, you know, you're looking through this inflation. There's still CPI cause still up around 3%. You're looking through that. But still you want to get confirmation that inflation is actually coming down to target in the way that you would like. So you don't want to be too aggressive because you might get burned by the data, as the committee did last year. So I think you want to get on this path toward neutral and you want to keep watching the data, especially on inflation. And if inflation comes in too high or starts going up again, that would be the main thing that would disrupt the growth agenda for the U.S. So I don't think you want to get into that hot water if you don't have to.

I did talk to the Treasury secretary relatively briefly. We did not go through, you know, ideas about what was required or job requirements or anything like that. I was under the impression that that process is still under construction for interviewing all these candidates. And, you know, at that point, we can discuss in more detail. So I just said that I'd be happy to participate in that process.

I do not. And but that's why I say that I think this is all under construction. So we'll see how they want to design it, and I'm sure it'll be a good process. I would say this is a credible list of candidates. I know almost all these people. I think this is a very sharp group and many of these people would do a fantastic job.