Fed’s Bostic is speaking and says:
- Balance of risks in economy is getting back to level
- Our rate posture is restrictive
- That’s not where we want it to be forever
- Recent inflation data give me more confidence we can get back to 2%.
- We need to see a little more data
- We need to make sure inflation trend is real
- It would be really bad if we cut rates and then had to raise them again.
- I am willing to wait for first rate cut but it is coming.
- If economy evolves as I expect, there would be a rate cut by the end of the year.
- Housing inflation has come down in an important way, the last couple of months.
- Unemployment rate in the grand scheme of things is still historically low.
- Still a strong solid labor market.
- But we need to make sure we don’t go from a heart labor market to a freezing cold one.
- contact don’t tell me there are many layoffs, if that continues will be in a good place.
- Recession not in my Outlook
- Labor market can slow but without considerable concern
What can we glean from comments:
- He is ready to cut
- But not by 50 bps.
- Still cautious but sees policy as restrictive which implies if inflation falls as planned, there can be a series of cuts
This article was written by Greg Michalowski at www.forexlive.com. Source