Bostic: No Urgency to Cut Interest Rates Given US Economy’s Strength

Atlanta Fed President Raphael Bostic emphasized that the U.S. Federal Reserve faces no immediate need to reduce interest rates, citing a “prospering” economy and job market.

While Bostic acknowledged the risk of inflation remaining above the central bank’s 2% target or increasing further due to “pent-up exuberance,” he underscored the importance of maintaining economic stability.

Bostic indicated that while he foresees the potential for two quarter-point rate cuts by year-end, the Fed is cautious about managing economic strength to prevent excessive inflation or “froth” in the markets. He emphasized the need for further progress in achieving a sustainable 2% inflation rate before considering rate adjustments.

Source: Reuters