Atlanta Federal Reserve Bank President Raphael Bostic said Monday that additional deep cuts by the Fed could be warranted if the U.S. labor market shows unexpected weakness.
Key points
I’m open to another half-percentage point cut if the labor market shows unexpected weakness.
The base case is an ‘orderly’ easing with inflation expected to continue to decline and the labor market to hold.
I don’t want to be overconfident about inflation given that the underlying personal consumption expenditure price index remains at 2.7%.
Business contacts continue to say they do not expect layoffs.
I will be watching the upcoming employment data closely; If job growth slows much below 100,000 jobs, it would be necessary to more closely question what is happening.
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.
