Central Banks
Fed’s Bostic Says May Take ‘Some Time’ to Hit Rate-Cut Threshold
- Atlanta Fed president makes the case to hold off on rate cuts
- Bostic says risks to US outlook have become more balanced
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Federal Reserve Bank of Atlanta President Raphael Bostic said there’s no rush to cut interest rates with the US labor market and economy still strong, and cautioned it’s not yet clear that inflation is heading sustainably to the central bank’s 2% target.
“The evidence from data, our surveys, and our outreach says that victory is not clearly in hand, and leaves me not yet comfortable that inflation is inexorably declining to our 2% objective,” Bostic said in a speech Thursday in New York. “That may be true for some time, even if the January CPI report turns out to be an aberration.”