President of the St. Louis Federal Reserve Bank: U.S. manufacturing appears ‘in recession’, Reuters

WASHINGTON (Reuters) – After delivering a split-decision rate cut earlier this week, U.S. Federal Reserve officials on Friday squared off over where the economy stands and what should be done about it.

St. Louis Federal Reserve president James Bullard and Boston Federal Reserve president Eric Rosengren both dissented against the quarter of a percentage point rate reduction, approved on a 7-3 vote.

But they did so from opposite ends of a spectrum that now runs from open talk of recession to warnings of a risky financial meltdown if the Fed continues cutting rates and encouraging debt.

In explaining his vote against the rate reduction, Bullard in a written statement said that he wanted an even larger cut, of half a percentage point, because the U.S. manufacturing sector “already appears in recession” and overall economic growth is expected to slow “in the near horizon.” Read more

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