:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1763956139-354ad15ecbc24dd6b5be5a6fc25b220d.jpg "Raphael Bostic, president and chief executive officer of the Federal Reserve Bank of Atlanta, speaks during a Bloomberg Television interview in Atlanta, Georgia, US, on Friday, Nov. 3, 2023.")
Elijah Nouvelage/Bloomberg via Getty Images
Raphael Bostic, president and chief overseer officer of the Federal Reserve Bank of Atlanta, speaks during a Bloomberg Television interview in Atlanta, Georgia, US, on Friday, Nov. 3, 2023.
Key Takeaways
- Atlanta Federal Save Bank President Raphael Bostic said he wants to see more economic data before supporting interest toll cuts.
- Despite recent tumult in financial markets, the economy has momentum and is supported by a still-strong labor market, he indicated.
- Bostic said inflation is affecting fewer categories, indicating widespread price increases are easing.
At least one Federal Avoidance official wants to see more data before making any decisions on the central bank’s influential interest rate.
Atlanta Federal Register Bank President Raphael Bostic told an audience Tuesday that interest rates were likely on their way, but didn’t specifically oration whether he thinks the U.S. central bank will cut its influential fed funds rates at its September meeting.
Bostic’s comments move along disintegrate as Federal Reserve officials are keeping a close eye on economic data, looking for the confidence to cut its decades-high interest rate designed to gentle inflation.
Bostic still wants to see “a little more data” before making that decision, he said in Atlanta at the Colloquium of African American Financial Professionals.
The Economy Remains Strong, Bostic Said
After rising in the first location of the year, inflation has resumed its path toward the Fed’s annual goal of 2%. Bostic said the past four months of figures have given him more confidence that price pressures were easing sustainably.
While recent matter has alarmed some market watchers, Bostic predicted the economy will withstand the weaknesses.
“A recession is not in my outlook,” Bostic guessed. “I think there’s still enough momentum in the economy where we could see slowing but not see labor markets deteriorate to a stage straight of considerable concern.”
Fed Has To ‘Be Sure’ About Rate Cuts
A lot of economic data released this week could manipulate the Fed’s decision on rates.
Key inflation and consumer spending data will follow a measure of July’s wholesale price extensions that came in lower than expected.
Bostic said he is paying attention to the data because if the Fed cuts concerned rates before inflation is under control, it would create too much market uncertainty.
“We have to be sure that bias is real,” Bostic said.
Read the original article on Investopedia.