Federal Reserve Bank of Atlanta President Raphael Bostic is seeking to dial down the enthusiasm over a potential rate cut by the central bank next month, arguing there was no rush for such an action.
Reuters reported that Bostic used a speech in Atlanta to declare he wanted further confirmation on the state of the economy from the monthly jobs report and two inflation reports that will be published prior to the Sept. 17-18 meeting to determine the state of interest rates.
“I don’t want us to be in a situation where we cut, and then we have to raise rates again – that would be a very bad outcome,” he said. “If I’m going to err on one side, it’s going to be waiting longer just to make sure that we don’t have that up and down.”
The Fed has kept its policy rate in the 5.25%-5.50% range for more than year as a strategy to bring down high inflation. Last week, Fed Chair Powell stated “the time has come” to reduce rates, although he stopped short of guaranteeing a cut would occur next month.
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I get the Atlanta chair’s point. Doesn’t want to raise expectations, or be swayed by politics. but an election eve cut is almost a gimmie.
Can we Agree the FED caused the inflation and continue to send our money overseas and immigrants among other frivolous activities.
The government has caused the inflation and is now causing the recession that we are currently experiencing. The open border is exasperating our current economy woes. The interest rate cuts were needed months ago. Business is hurting, homeowners are hurting. Drop the interest rate to zero on student loans so the taxpayer money goes back into the government account. Cut taxes on income earners that make $500k or less. Young adults between the ages of 25 -40 can’t afford to buys homes.
I know this seems counterintuitive or even insulting but be GLAD that you cannot but a home now. Any delayed purchases now will make you stronger buyer when prices come down. I know it seems like you’re taking an L now but you will win long term and that’s what really matters.
James, I agree 100% with you! The high rates are hurting us all. Drop the rates and let the economy flow once again…
Ed, inflation is primarily the result of politicians (of both persuasions) spending like drunken sailors to buy votes. Biden, Trump, Harris — they’re all guilty of it, though it’s mainly Congress’s fault since they control the purse strings. The national debt went up by $7.8 trillion during the Trump administration alone.
Hey Bill remember this thing called covid? How about the bogus Harris/Biden ramming the Omnius bill for a couple Trill that WASN’T NEEDED Is the problem. Did you get Any benefit from the Trump tax cuts? Were you enjoying the economic expansion before Covid?
How much has Harris/Biden contributed for zero to negative economic growth? How about All the Phony economic data and jobs reports for the past two+ years as well as lying to the American people and the rest of the world not to mention our economy our buying power, things to live like food, gas High interest rates just to name a few!!
Get some TDS meds please and wake up
100% vast majority of the administrations spending did more damage to the small business and the “citizens” of this country and added signifficantly to the devaluation of the US dollar.
Waiting till the next meeting is prudent. It keeps it out of elections and makes sure we are where we need to be. They waited too long to start so don’t compound it by starting too early
Fed should slow down for the cut.
As soon as people see the lower
rates house prices going to go up!
No – The fed has kept interest rates too high, too long! Mortgages and HELOC loans are too high, and many people-perhaps even most people, keep credit card balances which are denominated in or pegged to Fed rates. Yet the fed rates are not included in the interest rate calculations – like the cost of borrowing doesn’t reflect inflation! Duh!
I meant that the Fed rates are not included in the inflation rate calculation!! Sorry!
What read was that he doesn’t Trust the Jobs report OR the Inflation reports FED to us be The Biden Administration
A cut in interest rate would help what is left of the middle class and lower income earners as well as retired people that really get hit dollar wise because of the calculation of the cost of living index makeup. Those funds would be deductions on borrowed money and raise dollars to allow purchases that have had to be put aside hoping for basic living needs.