Atlanta Fed President Raphael Bostic reiterated in an interview that rate cuts remain a possibility this year, but emphasized the need for further data clarity before making any decisions.
He maintained a neutral stance, stating, “I am not taking anything off the table. I am not putting anything extra on the table.”
Bostic acknowledged that January’s hotter-than-expected inflation data raised questions about whether it represents “a new trend or just a bump in the road”. He will be closely analyzing economic developments “over the next several months” to determine the correct policy response.
Bostic also defended Fed’s current position, insisting, “I don’t think we have cut too much. We are still in a restrictive posture and that’s what we need.” He reaffirmed that monetary policy remains tight enough to bring inflation down, arguing that waiting until inflation fully reaches 2% before easing would have been a mistake.
