Atlanta Fed President Raphael Bostic said Fed should be patient on the next interest rate move until there is greater clarity on the economic outlook. He noted that business executives are “starting to examine their own business strategies and initiatives in anticipation of slowing economic conditions either through deleveraging or holding off on expansionary plans”. And, the financial markets showed that there was “heightened uncertainty and concern” among investors.
Bostic said “The appropriate response is to be patient in adjusting the stance of policy and to wait for greater clarity about the direction of the economy and the risks to the outlook”. And, “All the available evidence at the moment points to caution regarding firms’ approach to expansion. As long as that caution exists I suspect it will act as a natural governor” on growth.
