Atlanta Fed’s Bostic Doesn’t See Easing Talk Until Well Into 2024

Atlanta Fed’s Bostic has just given an interview and made it clear that the inflation goal has yet to be met. While he is an alternate member this year, he joins the FOMC in 2024. If his sentiments are shared by the current committee members, then the June and July meetings are still live and the market’s expectation of a rate cut by year end is premature.

• Bostic said that the best case is that the Fed won’t consider rate cuts until well into 2024. He also commented that the data will be guiding the Fed on future decisions and as such that it doesn’t want to be locked into a “particular rate move”.
• The US is not yet close to the inflation goal and so the Fed should stay focussed on what it is aiming to achieve. He expects that there will be some labour stress as inflation moderates, but that is less problematic to the economy than not getting inflation back down to 2%.