Mubasher: St Louis Federal Reserve Bank President James Bullard said he voted against the central bank’s decision to hold interest rates unchanged, Reuters reported.

Bullard cited that weak inflation and uncertainties about the economic growth outlook warranted cutting the costs of borrowing.

“Inflation measures have declined substantially since the end of last year and are presently running some 40 to 50 basis points below the [Federal Open Market Committee’s (FOMC)] 2% inflation target,” Reuters quoted Bullard’s Friday morning statement.

Bullard’s dissenting vote was the first since the FOMC’s policy meeting in December 2017.

Amidst weak inflation expectations, “lowering the target range for the federal funds rate at this time would provide insurance against further declines in expected inflation and a slowing economy subject to elevated downside risks,” Bullard noted.

The Fed retained its rates at a range of between 2.25% and 2.5%, but hinted in its new economic forecasts rate cuts of half a percentage point during the rest of the year.