Federal Reserve Bank of Atlanta President Raphael Bostic expressed uncertainty on Monday about supporting an interest rate cut at the upcoming December meeting, though he believes that the Federal Reserve should continue easing rates over the coming months. Bostic’s comments were reported by Bloomberg.
Bostic explained that the risks to achieving the Fed‘s dual mandates—maximum employment and price stability—have become more balanced, suggesting that monetary policy should be adjusted to a neutral stance that neither stimulates nor restricts economic activity. He added, “I’m keeping my options open” regarding a rate reduction at the December 17-18 meeting.
While acknowledging that there are “upside risks to price stability,” Bostic emphasized that recent economic trends do not signal a sharp deterioration in the labor market, nor is it excessively tight. Instead, he sees the labor market cooling “in a largely orderly fashion” as a result of higher interest rates, a sentiment echoed by business contacts.
Bostic also noted that despite some recent volatility, he does not view the economic fluctuations as indicative of stalled progress toward achieving price stability. Reflecting on past policy discussions, he observed that proposals often evolve over time.
Following Bostic’s remarks, the US Dollar Index (DXY) traded 0.01% lower, at 106.38.
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