2:13 PM · 4 September 2024

Fed Bostic comments🗽US economy and labor market losing momentum?

Raphael Bostic, from the American Federal Reserve, commented today US economy and labor market. Overall, commentary is quite mixed - not extremely dovish, but also not hawkish. Here are the highlights:

  • I am not quite prepared to declare victory over inflation, as risks remain.
  • The Fed must stay vigilant to ensure inflation risks continue to wane.
  • I am now giving equal attention to maximum employment objective as inflation.
  • The labor market continues to weaken, but is not weak.
  • Business contacts point to a loosening but still broadly stable labor market.
  • We must not maintain a restrictive policy stance for too long.
  • A soft landing for the economy may be within reach.
  • The most recent inflation reports bolster my confidence inflation is likely on a sustainable path back to 2%.
  • There is no panic among my business contacts but describe an economy and labor market losing momentum.
  • Price pressures are diminishing quickly and broadly

Since last rollover, futures on US Dollar index (USDIDX) dropped from 105 o almost 101 level. Overall, Bostic signals a 25 bps rate cut as more probable.

Source: xStation5

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