US Fed’s Bostic sees one rate cut in 2024

April 10, 2024 (MLN): Federal Reserve Bank of Atlanta President Raphael Bostic reiterated his expectation for one interest-rate cut this year, but added he’s open to changing his view to later or additional rate reductions should the economic picture change, as Bloomberg reported.

Bostic highlighted the enduring strength of the US economy and labor market, but said signs of weakness in the jobs market would prompt him to consider earlier and more cuts than he is currently expecting.

The Atlanta Fed chief has previously said he anticipates the Fed will reduce borrowing costs in the fourth quarter.

“I do think the risks are balanced and given that the US economy has been so robust and so strong and so resilient, I can’t take off the possibility that the rate cuts may even have to move further out,” Bostic said Tuesday on Yahoo Finance Live.

But he added, “If I started to get different signals to suggest that there’s a lot of coming pain in the labor market side, then I’d be open to changing our policy stance and perhaps cutting sooner.”

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