Bostic ('24): Fed Can Let Restrictive Policy Continue To Work In "Orderly" Process

Atlanta Fed’s Bostic (’24 voter), speaking in Atlanta without a livestream or prepared remarks, hasn't had a notably market impact in early Q&A. Recall last month he indicated he sees two cuts this year starting in the second half of the year, which he reiterates today.

• Fed is in a very strong position right now, can let restrictive policy continue to work to slow inflation. He expects the process will remain “orderly” (Reuters).
• Inflation has come down more than he expected (BBG), with the rise in unemployment being far less than what would typically be the case given the reduction in inflation (Reuters).
• At this point, shorter-term measures of inflation, such as over three- and six-months are more important and they're pointing "in a positive direction" (Reuters).
• Goods inflation is back to pre-pandemic levels, services inflation is moving there slowly and not expecting "big drops" in it (Reuters).
• Topline jobs numbers have been "pretty strong" but has recently been concentrated in a relatively small part of the economy (Reuters).