Bullard: Wall Street is Right with Record-Breaking Rises

President of the Federal Reserve Bank of St. Louis, James Bullard, is expecting the US economy to shrink by 4% in 2020, however, he does not see recent hikes by Wall Street as contradictory to the economic outlook.

“I think Wall Street has called this about right so far,” Bullard said in an interview with Reuters on Wednesday.

“I expect more businesses to be able to operate and more of the economy to be able to run successfully in the second half of 2020.”

“There is a lot of ability to mitigate and proceed and most of the data has surprised to the upside, so I think we are going to do somewhat better.”

“At least for now expectations are that the Fed will stay where we are for a very long time. The idea that you want to stimulate things presupposes that the virus has gone away.”

“You don’t need to shut down businesses that you don’t need to shut down.”