Federal Reserve of Boston Hawkish: No Further Rate Cuts Needed This Year, Concerned about Long-Term Elevated Inflation

BlockBeats News, September 22nd, Nick Timiraos, a Wall Street Journal journalist known as the "Fed Whisperer," stated that Atlanta Fed President Bostic informed him that despite the economic risks shifting towards greater concerns about employment in recent months, worries about inflation currently make him hesitant to support another rate cut in October.

Bostic mentioned in the interview that during last week's Fed meeting, he had only penciled in one rate cut for the full year of 2025. Since officials had already implemented a rate cut last week, this implies that Bostic currently believes that there is no need for further rate cuts in the remaining two meetings of this year (October and December).

He stated that these rate cut plans were "sketched with a very light pen," highlighting his lack of confidence in the correct direction of the rate path, but he remains more concerned about inflation persistently exceeding the Fed's 2% target.

"I am concerned that inflation has been at elevated levels for an extended period," Bostic said. "Therefore, I will not push for or support a rate cut in October at the moment, but we will have to see how things develop." The next Fed meeting is scheduled to be held on October 28th to 29th, Eastern Time. (FXStreet)