Fed members Raphael Bostic and Michelle Bowman commented on US interest rates policy and economic conditions today. Those remarks were quite 'surprisingly' dovish. We can assume that the stagflation risk emerges across the US economy.
Bostic:
-
“Right now I think the neutral real rate is around 1.25%. It’s possible the neutral rate is rising.”
-
“The risks to employment are comparable to inflation risk.”
-
“Sentiment around risks to employment has gone up a lot.”
-
“The story we hear from businesses is they are not hiring and not firing.”
-
“The job market slowdown is a little of both supply and demand.”
-
“We need to pay very close attention to consumer psyche.”
-
“I think there is more inflation to come.”
-
“Firms are feeling cost pressures and limits to not passing them on.”
-
“Tariff impact thus far is more muted on inflation than expected.”
-
“We should be concerned about inflation given how long it’s been above target.”
-
“I could support a 1.75% to 2.25% inflation target range at some point down the road.”
-
“I would be open to using an inflation target range.”
Bowman:
-
“I see 3 cuts in total for 2025.”
-
“Views on the economy and monetary policy.”
-
“I am concerned that housing weakness could lead to an accelerating drop in values.”
-
“Labor market could deteriorate fast in coming months.”
-
“Tariff impact on inflation will fade, inflation is otherwise near target.”
-
“If demand conditions do not improve, businesses may begin laying off workers.”
-
“I expect last week’s cut to be a first step towards a more neutral rate if the economy evolves as expected.”
-
“Important that recent statement included a forward-looking view for further cuts.”
-
“I’m worried the Fed is behind the curve on labor market weakness; policy may need to adjust faster if risks materialize.”
-
“I supported a quarter-point cut but it is important the Fed now proactively support the job market.”
🚀 US PPI inflation skyrockets to 6%
Economic calendar: US PPI inflation and euro area GDP 📌
Morning wrap (13.05.2026)
BREAKING: U.S. CPI shows persistent inflation pressure! Dollar Strengthens After Data Release!
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
