Fed’s Bostic says one data point is not a trend, remains resolute, vigilant on inflation

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