Fed’s Bullard: rates are high right now, can cut 100 bps into 2026

Former Federal Reserve official James Bullard voiced confidence in the U.S. economy Thursday, pointing to deregulation as a supportive force.

In an interview with Fox Business, Bullard said he has discussed the Fed Chair role with Scott Bessent and plans to sit down with him after Labor Day.

Bullard noted that interest rates remain “high right now” and projected the central bank could lower them by 100 basis points heading into 2026, with further cuts possible depending on economic conditions. He stressed that the Fed must also safeguard the U.S. dollar’s reserve currency status and described the nation’s fiscal challenges as “a spending problem.”

On political commentary, Bullard observed that “politicians comment on monetary policy all the time.”

Looking ahead, he expressed confidence in a September rate cut, dismissing the latest Fed minutes as already outdated.