In a conversation with reporters, St. Louis Fed President James Bullard said markets may be too optimistic on the time it takes to reach trade deals. “Markets have had this idea that trade resolution was just around the corner,” he said. “We’ve opened a Pandora’s box.” On the issue of soft versus hard economic data, he acknowledged that consumption data has been solid but said that was “backwards looking.” “And that’s why I’ve been emphasizing these downside risks and also emphasizing taking preemptive types of action to stay out of recession,” Bullard said. Speaking of the difficulty for the Fed to use tools at the lower bound, “use your tools while you can to just stay out of recession,” he said.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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