He President of the Atlanta Federal Reserve (Fed), Raphael Bosticsaid over the weekend that inflation could “oscillate” if policymakers cut interest rates too soon, warning that The fall in inflation towards the central bank's 2% target is likely to slow in the coming monthss, according to the Financial Times.
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“There are some risks of inflation stagnating completely“.
“Inflation must be firm and secure returning to our 2% goal.”
“It would be a bad outcome if we started easing rates and inflation started going up and down like a see-saw. That would undermine people's confidence in where the economy is headed.”
“Markets listen to what we say, our projections for rate cuts have been quite clear.”
“It will be very interesting to see the extent to which the Middle East conflict and attacks on container ships are starting to appear in the cost structure for companies in my district.”
“If we look at our employment mandate, we are firmly achieving it today.”
“But that's not the assumption for price stability.”
“There are signs that some segments of the economy have weakened.”
“Today we really haven't seen any movement in the money markets that suggests we are close to a scenario where we no longer have ample reserves.”
“Clearly at some point, there will be a sign that we are approaching that threshold, and we will have to think something.”
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.
