Bostic dropped the one-cut-only bombshell on Friday after the RTH close in the US:
In a nutshell:
- now projects just one interest-rate cut this year
- the cut will likely happen later in the year than he previously expected
He spoke on Monday and repeated that forecast. Finding media reports on his Monday comments is not easy, although Bloomberg (gated) did carry them.
- “I have an outlook for how the economy’s going to perform, if it does that, then I think we can afford to be patient.”
- says his decision to shift his forecast from two cuts to one as a “close call.”
- “we’ve got to let the data guide us”
- “As long as the economy is strong, as long as GDP is high, as long as businesses are hiring and folks have jobs, I’m not in a hurry to get inflation down to 2% … If it continues on a trajectory, I’m happy with that.”
- the Fed wants to avoid sparking market volatility as it shrinks its portfolio of assets … at some point the central bank will slow the pace of runoff
Bostic was speaking during a moderated conversation hosted by the University of Cincinnati’s Real Estate Center in Ohio.
This article was written by Eamonn Sheridan at www.forexlive.com. Source