MNI BRIEF: Fed's Bostic Sees One Rate Cut, Flexible On Path

Atlanta Federal Reserve President Raphael Bostic reiterated Tuesday his view for one interest rate cut in 2024, but he remains open to adjusting his view should the economic picture change.

“The risks are balanced and given that the U.S. economy has been so robust and so strong and so resilient, I can’t take off the possibility that the rate cuts may even have to move further out,” Bostic told Yahoo Finance, also repeating he anticipates the Fed will reduce borrowing costs in the fourth quarter. (See: MNI INTERVIEW: Fed To Cut Once Or Twice At Most In 2024 - Pakko)

The Atlanta Fed chief noted he is watching the labor market. “If I started to get different signals to suggest that there’s a lot of coming pain in the labor market side, then I’d be open to changing our policy stance and perhaps cutting sooner," he said.