United States Federal Reserve Bank of Atlanta President Raphael Bostic expressed Tuesday confidence in the recent inflation data, indicating progress toward the Fed’s 2% target.
However, he emphasized the need for more data to confirm this trend. “It would be really bad if we cut rates and then had to raise them again,” Bostic warned, highlighting the cautious approach the Fed is taking.
While Bostic acknowledged that the Fed’s current rate posture is restrictive, he believes it’s necessary to ensure inflation remains under control. He hinted at a potential rate cut by the end of the year, provided the economy evolves as expected.