• Thu. Apr 25th, 2024

Fed’s Atlanta President Predicts Cautious Approach to Monetary Policy in 2019

BySamantha Nguyen

Apr 3, 2024
Cutting Rates in Q4 Given Expected Economic Evolution

Atlanta Federal Reserve Bank President Raphael Bostic has expressed his forecast for the US central bank to lower the policy rate just once this year in an interview with CNBC. He noted that despite maintaining strong momentum, the economy may experience some incremental weakening. Bostic believes that the economy needs to slow down in order to reach its longer-run potential, but he still expects growth and inflation to continue, albeit at a slower pace than anticipated.

Bostic emphasized the need for the Fed to be patient in this environment, as inflation is likely to decrease at a slower rate than expected. He adjusted his forecast to include only one rate cut this year, with a potential cut in the fourth quarter if the economy evolves as he expects. Bostic projects that inflation will decrease gradually through 2024 and may not reach the 2% target until 2026.

Despite potential bumps in the road ahead, Bostic is not eager to disrupt the economy’s dynamics as long as inflation is moving towards the target rate. He did mention that any degradation in employment would need to be taken into consideration. However, he stated that his contacts have not expressed concerns about employment.

Bostic’s cautious outlook and forecast for a single rate cut this year suggest a measured approach to monetary policy in response to the changing economic landscape. The market did not show an immediate reaction to Bostic’s comments, with the US Dollar Index losing only 0.04% on the day at 104.70. Overall, Bostic’s comments indicate a more nuanced view of monetary policy and its impact on economic growth and stability.

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

Leave a Reply