HomeLive CommentsFed's Bostic eyes rate cuts by year-end

Fed’s Bostic eyes rate cuts by year-end

Atlanta Fed President Raphael Bostic indicated that interest rate cuts might be on the table by the fourth quarter of this year, provided economic conditions align with his expectations.

“My outlook is that if things go according to what I expect — inflation goes slowly, the labor market slowly and orderly moves back into a sort of a weaker stance, but a stable-growth stance — I’m looking at the end of the year, the fourth quarter, as the time where we might actually think about and be prepared to reduce rates,” Bostic said.

While acknowledging that the breadth of inflation remains high, Bostic noted that a reduction in this breadth would increase his confidence in making rate cuts. He mentioned that many of the inflation measures “are moving back into the target range,” suggesting progress towards Fed’s goals.

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