Atlanta Federal Reserve President Raphael Bostic said on Wednesday that the Fed is in a favorable position but added that they must not maintain a restrictive policy stance for too long, per Reuters.
Key takeaways
“Soft landing for economy may be within reach.”
“Most recent inflation reports bolster my confidence inflation likely on sustainable path back to 2%.”
“No panic among my business contacts but describe an economy and labor market losing momentum.”
“Price pressures are diminishing quickly and broadly.”
“I am not quite prepared to declare victory over inflation as risks remain.”
“Fed must stay vigilant to ensure inflation risks continue to wane.”
“I am now giving equal attention to maximum employment objective as inflation.”
“Labor market continues to weaken, but is not weak.”
“Business contacts point to a loosening but still broadly stably labor market.”
“Wage growth pulling back to level more conducive to price stability.”
Market reaction
The US Dollar stays under bearish pressure following these comments. At the time of press, the US Dollar Index was down 0.33% on the day at 101.43.
Source: https://www.fxstreet.com/news/feds-bostic-must-not-maintain-a-restrictive-policy-stance-for-too-long-202409041414