Fed's Bostic: Fed has to be cautious about first rate move

Source Fxstreet

Atlanta Federal Reserve President Raphael Bostic said on Tuesday that the restrictive monetary policy is having an impact on rate-sensitive sectors and delaying investment, per Reuters.

Key takeaways

"Businesses are confident in underlying strength of the economy; next year or two should see continued solid performance."

"The efficacy of monetary policy may be weaker than in the past, but that doesn't mean it is having no impact at all."

"The Fed's highest priority is to get inflation back to 2%."

"Expecting inflation to decline but relatively slowly, would not expect a rate cut before the fourth quarter."

"No longer hearing about difficulties in supply chains; hope is that goods deflation continues."

"The upcoming framework review will be robust, given the number of open questions about the economy and policy."

"Though businesses are confident about the economy, they don't feel they have the same pricing power as even 6 months ago."

"Fed has to be cautious about the first rate move, may need to be later in order to not stoke pent-up exuberance for investment, other spending."

"Would rather wait longer for a rate cut to be sure inflation does not start to bounce around."

"Not in a hurry to cut rates; want to make sure that policy easing is unambiguous."

Market reaction

The US Dollar Index edged slightly higher following these comments and was last seen rising 0.1% on the day at 104.68.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
3 Top Bargain Stocks Ready for a Bull RunThe market is coming off two strong years in 2023 and 2024, and that has led to a lot of expensive valuations for the better-performing stocks. But there are still some bargains to
Author  The Motley Fool
10 hours ago
The market is coming off two strong years in 2023 and 2024, and that has led to a lot of expensive valuations for the better-performing stocks. But there are still some bargains to
placeholder
Gold recovers ahead of US CPI inflation dataGold’s price (XAU/USD) recovers initial weekly losses and edges higher for the second day in a row, trading in the $2,680s on Wednesday, after a softer-than-expected United States (US) Producer Price Index (PPI) release the previous day triggered substantial easing in US yields.
Author  FXStreet
10 hours ago
Gold’s price (XAU/USD) recovers initial weekly losses and edges higher for the second day in a row, trading in the $2,680s on Wednesday, after a softer-than-expected United States (US) Producer Price Index (PPI) release the previous day triggered substantial easing in US yields.
placeholder
GBP/USD: Set to face significant support at 1.2100 – UOB GroupThe Pound Sterling (GBP) is likely to trade in a 1.2150/1.2275 range. In the longer run, deeply oversold conditions signal GBP could trade in a range for a couple of days; any decline is expected to face significant support at 1.2100, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Author  FXStreet
11 hours ago
The Pound Sterling (GBP) is likely to trade in a 1.2150/1.2275 range. In the longer run, deeply oversold conditions signal GBP could trade in a range for a couple of days; any decline is expected to face significant support at 1.2100, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
placeholder
JPMorgan Predicts $14 Billion Inflows For Proposed Crypto ETFs If Approved By US SECJPMorgan Chase & Co. Analysts have made a significant projection regarding the potential impact of a new wave of exchange-traded funds (ETFs) focused on alternative crypto assets.  Should these
Author  NewsBTC
11 hours ago
JPMorgan Chase & Co. Analysts have made a significant projection regarding the potential impact of a new wave of exchange-traded funds (ETFs) focused on alternative crypto assets.  Should these
placeholder
Gensler Calls Bitcoin ‘Highly Speculative’ Yet In-demand: 7 Billion Want To Trade ItIn a recent interview with CNBC’s Squawk Box, outgoing US Securities and Exchange Commission (SEC) Chair Gary Gensler offered a nuanced perspective on the digital asset landscape, particularly focusing on Bitcoin (BTC) and the broader crypto market.  His remarks come amid increased scrutiny of the industry, which has faced regulatory challenges and calls for greater […]
Author  Bitcoinist
11 hours ago
In a recent interview with CNBC’s Squawk Box, outgoing US Securities and Exchange Commission (SEC) Chair Gary Gensler offered a nuanced perspective on the digital asset landscape, particularly focusing on Bitcoin (BTC) and the broader crypto market.  His remarks come amid increased scrutiny of the industry, which has faced regulatory challenges and calls for greater […]
goTop
quote