Federal Reserve's Bostic Expects Single Interest Rate Cut, Citing Persistent Inflation and Strong Economic Data

During a press conference on Friday, Atlanta Federal Reserve bank President Raphael Bostic announced a revised expectation for interest rate cuts in the coming year. He stated that he now anticipates a single quarter-point cut, as opposed to the previously projected two cuts. Bostic attributed this change in outlook to persistent inflation and better-than-expected economic data.

Inflation Concerns

Bostic expressed a decrease in confidence regarding the decline of inflation towards the Federal Reserve's 2% target. He specifically mentioned being "definitely less confident than I was in December" about this matter, indicating a shift in his perspective on the inflation trend.

Revised Timeline

As a result of the aforementioned factors, Bostic also revealed the adjustment of his forecast for rate cuts, along with a postponement of the expected commencement date to later in the year.