Central Banks
Fed’s Bostic Sees Year-End Rate Cut as Inflation Shows Progress
- Risks are more balanced between prices and employment, he says
- ‘Inflation still remains the chief concern,’ Atlanta head says
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Federal Reserve Bank of Atlanta President Raphael Bostic said he continues to expect one interest rate cut this year in the fourth quarter, unchanged from his view in March, amid signs inflation has resumed its decline.
Bostic cited details within April and May inflation reports as “glimmers” of evidence that price changes are moving to the Fed’s 2% goal, and said he sees risks to the labor market and inflation as becoming more balanced in recent weeks. Bostic’s latest views were included in an essay posted to the Atlanta Fed’s website Thursday and a separate press briefing.