Atlanta Federal Reserve President Raphael Bostic is speaking on the economic outlook and monetary policy at the University of London. His dovish comments are in line with the Federal Reserve’s (Fed) latest decision to cut the benchmark interest rate by 50 basis points (bp).
Key points
“Companies are being more careful in hiring, but they are not considering layoffs.”
“The economy is actually close to conditions that would be considered normal.”
“Price increases have slowed and have been concentrated in housing.”
“Risks to the labor market have increased, with the possibility of broader weakness than a year ago.”
“A half-point rate cut at this meeting does not set a pace for future rate cuts.”
“Recent data convincingly show that the US is on a sustainable path toward price stability.”
“Business leaders say pricing power has virtually disappeared.”
“The recent low levels of some recent inflation indicators bode well.”
“The Fed now faces two risks, largely balanced.”
Market reaction
The US dollar (USD) remained under mild selling pressure following the news but barely reacted as the focus remains on the US PMI figures scheduled for after the Wall Street open.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
