Federal Reserve Bank of Atlanta President Raphael Bostic was early to tip (many) bucketloads of cold water on the idea of multiple, near-term, FOMC rate cuts, and he is still beating expectations down:
- Pleased with inflation progress in April but Fed is not yet there
- Lower shelter
inflation was a significant development - One data point is
not a trend - Says remains “resolute” and “vigilant” about inflation
- There is still a lot
of pricing pressure in the economy
-
Hearing businesses say they are at the limits of pricing power and
not able to fully pass-through input costs - Outlook right now is
for continued fall in inflation, which would make appropriate to
reduce rates later in the year, but nothing not locked in - Have to be open to a
broad range of possibilities, with “a number of different
scenarios” that could play out
This article was written by Eamonn Sheridan at www.forexlive.com. Source