Bostic says Fed should hold off on interest rate cut until Q4

April 3 (Reuters) – The Federal Reserve should hold off on beginning to cut its benchmark interest rate until the end of this year, Atlanta Fed President Raphael Bostic said on Wednesday, as he maintained his view that the U.S. central bank should only reduce borrowing costs once over the course of 2024.

ATLANTA, GA - AUGUST 4: Branch President Raphael Bostic poses for portrait in front of Atlanta, Georgias Federal Reserve Bank on August 4, 2020. (Photo by Eric Hart Jr. for The Washington Post via Getty Images)

Atlanta Fed President Raphael Bostic. (Eric Hart Jr. for The Washington Post via Getty Images) (The Washington Post via Getty Images)

“We’ve seen inflation kind of become much more bumpy,” Bostic said in an interview with broadcaster CNBC. “If the economy evolves as I expect and that’s going to be seeing continued robustness in GDP and employment, and a slow decline in inflation over the course of the year, I think it will be appropriate for us to start moving down at the end of this year, the fourth quarter.”

(Reporting by Lindsay Dunsmuir; Editing by Chizu Nomiyama)

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *