Atlanta Federal Reserve President Raphael Bostic last Wednesday, September 4, announced his readiness to cut interest rates and separately noted that he does not perceive as an obstacle to appropriate action the fact that currently, the inflation gauge is higher than the target of the central bank of the United States.
It is worth noting that Mr. Bostic has been one of the supporters of the aggressive strategy of the Federal Reserve System for a long period. He supported decisions providing for tougher measures to combat inflation. It is worth noting that the appropriate approach does not provide for monetary policy easing.
A message published on the official website of the Atlanta Fed contains a statement by Raphael Bostic that, in his opinion, to start removing restrictions, it is not worth waiting for the inflation rate to fall to the target mark of the central bank of the United States at 2%. According to the President of the Atlanta Fed, in this case, a late decision may provoke disruptions in the labor market, which may cause unnecessary pain and suffering. Raphael Bostic also stated that currently, his attention is increasingly shifting towards the state of affairs in the employment area.
In July, the inflation rate in the United States was fixed at 2.5%. At the same time, the core rate just slightly exceeded 2.6%, excluding the cost of food and energy.
Raphael Bostic, in the context of statements about readiness for lowering the cost of borrowing, did not specify when, in his opinion, the central bank of the United States should begin to ease monetary policy. It is worth noting that currently there are widespread expectations that the Fed will start cutting interest rates in September. Corresponding sentiments dominate the markets.
As we have reported earlier, Federal Reserve Bank of Atlanta President Expects One Rate Cut in 2024.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
