Despite Friday's weak economic data, both believe the economy is going to be stronger in the second half of the year, with lower inflation.
"This is all confirming what we already knew, which is that the first half has not been as strong as we like. I think we’re in better shape for better growth in the second half of the year," Bullard said. "Policy is about right where it needs to be at the moment."
He noted, however, that with a $14 trillion deficit and a deadline looming on raising the debt ceiling, the Fed "can’t do anything to fix this."
"If the Treasury can’t issue more debt it can’t issue more debt," he said. "We cannot buy debt directly from the Treasury. We can only buy debt in the open market."
If the impasse "led to a generalized crisis, we could come in and provide liquidity to the markets as we did in 2008 and 2009. But the Fed doesn’t have the ability to fix this situation. This is up to the Congress and the president," Bullard said.