The Federal Reserve decided to hold interest rates steady on Wednesday, though investor hopes for a rate cut in September still linger on Wall Street. Former St. Louis Fed President and current Dean of Purdue University's Daniels School of Business Jim Bullard joins Morning Brief to discuss his outlook.

Bullard believes Fed Chair Powell has alluded to "September as a key point for the committee." However, he notes there are still a number of economic reports to be released before that meeting, saying "it's possible that it would get derailed." Though overall, Jim states a rate cut at that time would be "appropriate."

Regarding the US labor market, Bullard calls its recent performance "extraordinary." He suggests that investors' main focus is now "all about normalizing" the labor market. While the FOMC doesn't want the situation to "run away from them," Bullard doesn't think the labor market is "in bad shape at all."

"It's more about normalization of the labor market than about deterioration of the labor market," Bullard tells Yahoo Finance.

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This post was written by Angel Smith