Federal Reserve’s Bostic Encouraged by Continued Strong Economic Momentum, Anticipates Rate Cut in Q4

The speaker predicts that the economy will slow down at a gradual pace in the long run, but there are some secondary measures in the inflation numbers that are causing concern. Despite these concerns, the speaker is not in a rush to disrupt the current economic dynamics as long as inflation is on track to reach its target.

The speaker believes that it is necessary for the economy to slow down in order to reach the desired inflation target and is closely monitoring the situation to see how things progress. If the economy continues to evolve as expected, the speaker plans to start cutting rates in the fourth quarter. However, certain aspects of the inflation numbers are worrisome, particularly the rising percentage of goods in the CPI basket that are growing at rates above 3% and even 5%. This trend is reminiscent of the high inflation period and needs to be monitored closely before any decisions are made regarding policy rates.

The speaker expects employment contacts not to express any worries about a potential slower movement and takes a more hawkish stance. Contacts related to employment have not expressed any worries to him yet. Therefore, he plans to closely monitor this situation before making any decisions regarding policy rates.

In conclusion, while there may be some concerns about inflation numbers, it seems like there’s no rush for policy changes just yet. The speaker wants to ensure that inflation reaches its target before taking any action on interest rates cuts or other policy measures.

By Riley Johnson

As a content writer at newsmol.com, I dive into the depths of information to craft compelling stories that captivate and inform readers. With a keen eye for detail and a passion for storytelling, I strive to create engaging content that resonates with our audience. Whether it's breaking news, in-depth features, or thought-provoking opinion pieces, I am dedicated to delivering high-quality, informative content that keeps readers coming back for more. My goal is to bring a fresh perspective to every article I write and to make a meaningful impact through the power of words.

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