Federal Reserve Bank of Atlanta President Raphael Bostic recently stated that with inflation decreasing and unemployment rising more than expected, it might be “time to move” on rate cuts. However, he emphasized the importance of being certain before making any decisions. Bostic wants confirmation from upcoming jobs and inflation reports before the Fed’s September 17-18 meeting to ensure stable economic trends.
At an event organized by the Stanford Club of Georgia and the Stanford Black Alumni Association-Atlanta, Bostic expressed his caution: “I don’t want us to cut rates and then have to raise them again – that would be a very bad outcome, as it could undermine people’s confidence in the Fed.” He added that he would rather wait longer to avoid any potential back-and-forth with rates.
The Fed has maintained its policy rate in the 5.25%-5.50% range for over a year to combat high inflation. Last week, Fed Chair Jerome Powell indicated it might be time to reduce borrowing costs as price pressures have eased and the labor market has cooled. Bostic, who previously anticipated only one rate cut this year in the fourth quarter, has recently shown openness to starting the cuts earlier.
