Fed/ Bostic: Rate cut may take some time

Atlanta Fed President Raphael Bostic said he was not ready to call for a rate cut just yet because of the ongoing risks. He said there was no rush to cut interest rates while the U.S. labor market and economy were still strong, and he warned that it was not clear whether inflation was moving sustainably toward the central bank’s 2% target. “The evidence from the data, from our surveys, is that victory is clearly not achieved. We have made significant and welcome progress in slowing the pace of inflation. My expectation is that the inflation rate will continue to fall, but at a pace slower than the markets suggest monetary policy should be,” Bostic said in a speech in New York on Thursday. Chairman Jerome Powell said the Fed needed greater confidence that inflation was on track to return to its goal, while other policymakers warned of risks that could keep inflation above 2%. “I need more confidence before I declare victory in this fight for price stability,” said Bostic, who this year became a voting member of the Fed’s policy-setting committee.