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At a NAFCU-attended event Tuesday, Federal Reserve Bank of St. Louis President James Bullard provided more context around the Federal Open Market Committee's (FOMC) approach to monetary policy and the economic outlook, noting that "U.S. monetary policy is considerably more accommodative today than it was as of late last year."

Bullard was speaking at the National Economists Club in Washington, D.C. NAFCU Chief Economist and Vice President of Research Curt Long attended the event. The FOMC – for the first time in a decade – cut interest rates by 25 basis points during a meeting last week; see Long on Yahoo! Finance TV providing an analysis of the decision and economy here.

"President Bullard has been an influential voice in realigning the policy outlook for the FOMC since late last year," Long said. "However, his speech reflects a desire to let the most recent rate cut settle in before making another move. NAFCU continues to believe that the FOMC will not cut rates in September. If this is correct, we are likely to see a concerted campaign by Fed officials over the next six weeks to adjust market expectations."

Bullard used the two-year Treasury, which was trading to yield 2.98% in November 2018 compared to 1.72% last week, as an example of interest rates being "dramatically lower" today than toward the end of last year. He also acknowledged slower economic growth and increased uncertainties around trade, arguing that "U.S. monetary policy cannot reasonably react to the day-to-day give-and-take of trade negotiations."

"However, FOMC actions have also changed the outlook for shorter-term interest rates considerably over the last nine months, ultimately providing more accommodation to the economy," he concluded.

Access Bullard's presentation here.