Atlanta Fed Pres. Bostic: Balance of risks and economy is getting back to level

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