If the economy develops as expected, a rate cut in the fourth quarter may be appropriate.

Raphael Bostic, president of the Atlanta Federal Reserve Bank, said in an interview with CNBC that he expects the U.S. central bank to cut interest rates only once this year.

key quotes

“The economy continues to have as strong momentum as ever.”

“If there is any weakening, it is at a very gradual level.”

“On longer arcs, the economy will need to slow down to reach its long-term potential.”

“I think growth is still possible and inflation can continue to fall.”

“But in that environment, inflation will fall much more slowly than expected.”

“That’s partly why I changed my prediction, because the prey is going to have to be more patient than expected.”

“I still expect one rate cut this year.”

“We will have to wait and see how the situation develops.”

“If the economy develops as expected, we believe it is appropriate to cut interest rates in the fourth quarter of this year.”

“My outlook now is that inflation will gradually decline through 2024.”

“I don’t think we’ll be able to get back to the 2% inflation target until 2026.”

“Inflation has not moved much over the past few months compared to 2023, so the road ahead will be bumpy.”

“As long as inflation is moving towards the target interest rate, I am in no rush to disrupt the dynamism of the economy.”

“But if employment starts to deteriorate, I will have to accept that.”

“Still, my contacts are not at all worried about getting a job.”

market reaction

There was no immediate reaction to the comments from the U.S. dollar index, which was last seen down 0.04% on the day at 104.70.