Central Banks
Bostic Sees Fed Pausing After Just One Rate Cut in Third Quarter
- Atlanta Fed leader wants to delay tapering asset runoff
- Bostic is worried rate cut could unleash ‘pent-up exuberance’
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Federal Reserve Bank of Atlanta President Raphael Bostic said he expects the Fed’s first interest-rate cut, which he has penciled in for the third quarter, will be followed by a pause the following meeting to assess how the policy shift is affecting the economy.
Bostic, in a separate commentary published on the Atlanta Fed website Monday, said he was worried that businesses have too much exuberance and could unleash a burst of new demand after a rate cut that adds to price pressures. That could be another reason not to cut rates at a rushed pace, he told reporters in a press briefing.