Fed's Bostic: Economy near normal, sustainable path to price stability
Atlanta Federal Reserve President Raphael Bostic is speaking about the economic outlook and monetary policy at the University of London. His dovish comments align with the latest Federal Reserve’s (Fed) decision to trim the benchmark interest rate by 50 basis points (bps).
Key takeaways
“Businesses are becoming more careful in hiring but not considering layoffs.”
“The economy is effectively near conditions that would be considered normal.”
“Price increases have narrowed and become concentrated in housing.”
“Risks to the labour market have increased, with the possibility of broad weakness higher than a year ago.”
“A half-point cut at this meeting does not lock in a cadence for future rate cuts.”
“Recent data show convincingly that the US is on a sustainable path to price stability.”
“Business leaders say pricing power has all but evaporated.”
“Low recent levels of some recent inflation indicators portends well.”
“The Fed is now facing two, largely balanced risks.”
Market reaction
The US Dollar (USD) remained under mild selling pressure after the news, but it barely reacted, as the focus remains on United States (US) PMI figures scheduled for after Wall Street's opening.
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