Atlanta Fed President Bostic points to 2025 for normalization

While the cost of borrowing in the US remains high, Fed members continue to avoid signaling a decrease in this cost anytime soon. Atlanta Fed President Raphael Bostic expressed hope that the very high price pressures seen during the Covid-19 pandemic will return to normal, but pointed to 2025 for this normalization. Speaking at a conference on Wednesday, Bostic said, “We still have a long way to go to reduce the significant price increases seen over the last few years.” Bostic pointed to the fourth quarter of this year to prepare for a rate cut. The Fed’s Beige Book, published on Wednesday evening, noted that economic growth has moderated as consumers cut back on spending in the face of high prices. The Fed stated that business representatives it spoke to for the report reflected the view that consumers oppose additional price increases.