Nick Timiraos in Walll Street Journal article interviews Fed’s Bostic who says:
- He is open to pausing a rate cut at the November meeting if economic data supports it.
- Bostic supported the half-point rate cut in the previous meeting.
- He penciled in a potential quarter-point cut by the end of the year, but is open to skipping a move if data trends as expected.
- September’s stronger-than-expected CPI and payroll reports suggest the need to be patient and possibly pause.
- Bostic emphasized data volatility and expects more fluctuations in upcoming data.
- The Fed’s current rate is 4.75%-5%, with a neutral rate estimated at 3%-3.5%, which Bostic expects to move toward next year.
This article was written by Greg Michalowski at www.forexlive.com. Source