Former Fed "big hawk" Bullard: Cutting interest rates in March is wise

Former St. Louis Fed President Bullard recently stated that he believes the Fed should cut interest rates at the next meeting (in March) as a preemptive move to prevent its policy stance from overly suppressing economic activity later this year. Two years ago, Bullard was a major advocate for rapid interest rate hikes, and as recently as last summer, he warned that further rate hikes were necessary. However, he now says that a rate cut makes sense, as inflation rates have fallen below 3% and are moving towards the Fed's target of 2%, based on the indicators the Fed prefers. "I think they should move," he said after speaking at a meeting of the National Business Economics Association in Washington. "The wiser course of action might be to move earlier but at a slower pace."