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FED: Bostic – Don’t Want To Be Overly Confident On Inflation Path

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  • Bloomberg has run headlines from an interview that Atlanta Fed’s Bostic (’24 voter) gave to Reuters noting that he’s open to a 50bp cut rate if labor data is weak although broader comments appear more in keeping with his comments last week that the Fed isn't in a "mad dash" to neutral.
  • "If the story is that inflation is continuing its drop and the labor market is staying strong, I think we have the luxury of being a bit more patient" with rate cuts. "If, on the other hand, the labor market comes in much weaker, I think that would add urgency to this."
  • Bostic said he did not "want to get caught in some degree of over-confidence that the pathway on inflation is short," and noted that the PCE price index stripped of food and energy costs, the so-called "core" measure of inflation that is regarded as a good indicator of future price pressures, was still running at 2.7% last month.
  • "It is useful and positive for us to still be in a restrictive posture" until there is more data showing inflation in decline, Bostic said.
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  • Bloomberg has run headlines from an interview that Atlanta Fed’s Bostic (’24 voter) gave to Reuters noting that he’s open to a 50bp cut rate if labor data is weak although broader comments appear more in keeping with his comments last week that the Fed isn't in a "mad dash" to neutral.
  • "If the story is that inflation is continuing its drop and the labor market is staying strong, I think we have the luxury of being a bit more patient" with rate cuts. "If, on the other hand, the labor market comes in much weaker, I think that would add urgency to this."
  • Bostic said he did not "want to get caught in some degree of over-confidence that the pathway on inflation is short," and noted that the PCE price index stripped of food and energy costs, the so-called "core" measure of inflation that is regarded as a good indicator of future price pressures, was still running at 2.7% last month.
  • "It is useful and positive for us to still be in a restrictive posture" until there is more data showing inflation in decline, Bostic said.