Federal Reserve (Fed) of Atlanta President Raphael Bostic hit newswires on Thursday while speaking at an event held at the Atlanta Chamber of Commerce.
Bostic highlighted that the base case is for the Fed to begin exploring rate cuts sometime in the third quarter, but left the door open for the rate cut cycle to begin sooner depending on inflation figures.
Key highlights:
- Fed’s Bostic: Baseline is for rate reductions sometime in Q3, but care is needed to not too cut soon or risk a refreshed price spiral.
- Bostic is open to cutting rates before July, but only if there is “convincing evidence” that inflation is slowing faster than anticipated.
- Given current uncertainty, it’s unwise for the Fed to lock in any specific approach moving forward.
- There is a possibility that current geopolitical risks could complicate supply chains; budget fights in the US could impact financial markets and the economy.
Source: https://www.fxstreet.com/news/feds-bostic-baseline-is-for-cuts-to-begin-in-q3-202401181733