Thursday Aug 29 2024 07:16
3 min
Bostic said, “I don’t want us to be in a situation where we cut rates and then have to raise them again. If I were to lean one way, it would be to wait longer.”
Atlanta Fed President Bostic stated that it may be "time to consider" a rate cut, but he is still seeking more data to support the need for lowering rates next month.
Bostic reiterated that due to inflation falling faster than he had anticipated and the unemployment rate rising more quickly, he has adjusted his expectations for the timing of a rate cut. However, he remains cautious.
At an event organized by the Stanford Club of Georgia and the Atlanta Stanford Black Alumni Association, Bostic said, “I don’t want us to be in a situation where we cut rates and then have to raise them again.”
He added, “If I were to lean one way, it would be to wait longer, just to ensure that we don’t experience fluctuations.” However, he emphasized that this is not his baseline expectation.
Fed Chair Powell indicated last week that "now is the time" for officials to consider a rate cut, strengthening market expectations for a rate reduction at the Fed’s policy meeting on September 17-18.
In a speech at the Fed’s annual meeting in Jackson Hole, Wyoming, Powell did not specify how quickly officials would act, noting, “The timing and pace of a rate cut will depend on upcoming data, the evolving outlook, and the balance of risks.”
He emphasized his increased confidence in the path to bringing inflation back to 2% and noted that officials do not want to see further weakening in the labor market.
In an interview at Jackson Hole, Bostic began adjusting his stance, having previously leaned towards only a single 25-basis-point cut by the end of 2024.
Bostic said on Wednesday that the upcoming inflation and employment reports will be crucial indicators for policymakers to assess whether the trends they are observing are continuing.
Officials will receive a new inflation reading with the Personal Consumption Expenditures (PCE) Price Index on Friday and an update on employment when the Labor Department releases the August employment report on September 6.
When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.
Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.
Tags Directory
View allLatest
View all
Tuesday, 25 February 2025
8 min
Tuesday, 25 February 2025
5 min
Monday, 24 February 2025
5 min
Wednesday, 26 February 2025
Indices
Why Is Bitcoin Dropping Below $90k? Tariffs, Economic Fears, and ETF Outflows Unpacked
Wednesday, 26 February 2025
Indices
Copper Price Per Lb Surges as Chile Outages Offset Trump Tariffs 2025
EN
