Federal Reserve’s Bostic Encouraged by Continued Strong Economic Momentum, Anticipates Rate Cut in Q4

There is a possibility that the economy may slow down at a faster pace, but there are no clear signs of it happening yet. The speaker believes that any weakening is occurring at a very gradual rate. In order to achieve the desired inflation target, it is crucial for the economy to slow down in the long run.

The speaker predicts that inflation will reach its target by 2026. However, certain secondary measures in the inflation numbers are causing concern about a potential slower movement. Despite these concerns, the speaker remains cautious and is not in a rush to disrupt the current economic dynamics as long as inflation stays on track.

Contacts related to employment have not expressed any worries to the speaker, who takes a more hawkish stance. The speaker points out certain aspects of the inflation numbers that are concerning, particularly the rising percentage of goods in the CPI basket that are growing at rates above 3% and even 5%. This trend resembles the high inflation period and must be closely monitored to prevent upward pricing pressure before any policy decisions are made.

By Sophia Gonzalez

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