Atlanta Federal Reserve President Raphael Bostic signalled caution about supporting another interest-rate cut at the December meeting, even though he backed the two reductions delivered earlier in the year.
Info via Bloomberg.
Speaking at an event in Seattle late on Friday, Bostic said he wants incoming data to dictate whether additional easing is appropriate, emphasising that policy should not be pre-committed.
Bostic also described the current environment as difficult for policymakers, noting that neither side of the Fed’s dual mandate — inflation and employment — is clearly progressing toward target. Earlier in the week, he warned that inflation remains the more pressing risk, suggesting he may lean against further near-term easing unless the data weaken.
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His remarks highlight the widening divide within the Fed’s rate-setting committee, where officials are split on whether the economy warrants another move after this year’s cumulative half-percentage-point reduction. Market pricing currently implies slightly less than even odds of a quarter-point cut at the Dec
