Atlanta Federal Reserve President Raphael Bostic anticipates that the central bank will initiate rate cuts in the third quarter of this year, as long as the current economic conditions remain stable. Bostic made this projection during his speech at the Atlanta Business Chronicle’s 2024 Economic Outlook event on Thursday.
Earlier Start to Rate Normalization
Bostic explained that due to unexpectedly robust progress in reestablishing inflation at the Federal Reserve’s desired 2% target and a moderation in economic activity, he has revised his timeline for initiating the “normalization of the federal funds rate” to the third quarter of 2024. Previously, Bostic had expected rate cuts to begin in the fourth quarter of the same year.
Acknowledging the unpredictable nature of the current macroeconomic environment, Bostic emphasized that it would be unwise to rigidly commit to a specific monetary policy approach. He stressed the importance of careful analysis and allowing events to unfold before commencing the process of policy normalization. Bostic further highlighted that his perspective on policy will continuously depend on the economic data.
(This is a developing story. Please check back soon for more detail.)