Atlanta Fed President sends rate cut message

Atlanta Fed President Raphael Bostic said he expects the Fed to pause at its next meeting after just one rate cut in the third quarter. Atlanta Fed President Raphael Bostic said he expects the Fed to pause at its next meeting after its first rate cut planned for the third quarter to assess how the policy change is affecting the economy. In a separate commentary posted on the Atlanta Fed website on Monday, Bostic said he is concerned that businesses have too much enthusiasm and could create a new surge in demand after a rate cut that adds to price pressures. That could be another reason not to cut rates quickly, he told reporters at a news conference. “I probably wouldn’t have predicted back-to-back cuts. Given the uncertainty, I think it’s good to get going and then see how market participants, business leaders and families respond to that,” Bostic said. Bostic’s comments came ahead of Fed Chair Jerome Powell’s monetary policy statement to Congress on Wednesday and Thursday. The president is expected to reiterate his policy committee's message that there is no rush to cut interest rates.