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The potential for a terminal rate to be
maybe higher than what folks have

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already guided to Steve.
Matthew is joining us right now to talk

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a little bit more about what Bostick
told him.

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I'll put this in context for us.
And we should point out Bostic isn't a

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voting member, but he talks about the
idea that his base case is still around

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five point one, but it could be higher
based on some of the latest data we got.

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What did he say?
Yeah, that's right.

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Remain.
He said he was really surprised and just

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really taken aback by the numbers that
came out on Friday that, you know, the

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momentum in the labor market is just
much stronger than expected.

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And he said, you know, you can't take
one report.

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I mean, this is similar to what every
Fed official says.

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You can't you can't overemphasize any
single report.

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But he says if that's confirmed by
additional reports that showed the

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economy is stronger than they expect,
then you could easily be looking at an

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additional rate hike and that a higher
peak rate.

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And that's something that, you know,
he's that is really on his mind.

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He said the first and second quarter of
this year could be stronger than

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expected.
You know, the Fed's forecast is for

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growth to be about half of a percent for
the full year.

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And, you know, it certainly seems like
the strong labor market might be

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inconsistent with their forecasts.
Another thing he mentioned, which I

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thought was really interesting, is that
as everyone looks at the path of the

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Fed's rate hikes, people are thinking
that since the Fed taper down from 75

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basis points or 50 basis points to now
25 basis points, that it will stick with

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25 or eventually just stand pat Bostic
brought up the possibility that the Fed

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could go back up to a 50 basis point
interest rate increase, didn't he?

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Yeah, he said he was supportive of the
move last week to move down to a quarter

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point, but that, you know, for the
future, all options ought to be on the

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table.
You know, he said

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what people need to understand is as
they move into this new phase, that is

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very much data dependent, that they need
to be able to consider a wide range of

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options.
So that in his view, you know, 50 is

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certainly while not his base case and
not something that he's pushing for.

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It's something that at least is an
option that's out there.