Citing a “prospering” economy and job market, Atlanta Fed President Raphael Bostic said there’s no urgency for the Federal Reserve to cut interest rates. However, he added, it would probably be appropriate for the Fed to pass two quarter-rate point cuts by the end of 2024.
“Only when I gain that confidence will I feel the time is right to begin lowering the federal funds rate,” Bostic said. “The good news is the labor market and economy are prospering, furnishing the (Federal Open Market) Committee the luxury of making policy without the pressure of urgency.”
Bostic, who is a voter this year on interest rate policy, also noted that he didn’t believe that any coming rate cuts would occur back to back. The timeline will depend, he said, on “how participants in the markets, business leaders and families respond.”
The Federal Reserve will hold a meeting on March 19-20, when they are expected to maintain the interest rate between 5.25% to 5.5%. It’s also anticipated that they will provide updated forecasts for how far rates will go down in this year.
