Atlanta Fed President Raphael Bostic believes there's no immediate need to hike interest rates further due to signs of an economic slowdown and feels the current rates can achieve the Fed's 2% inflation target. On the other hand, Fed Governor Christopher Waller suggests the central bank can observe rate developments, noting the economy's strength and expecting inflation to return to target levels. Both express confidence in the Fed's current stance, although with slightly differing emphasis on immediate actions.
Raphael Bostic (Atlanta Fed President):
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Believes there's no need for the Federal Reserve to increase interest rates further due to indications that the economy is beginning to slow.
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Feels current rates are adequately restrictive to bring inflation down to the Fed's 2% target.
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Stated that if inflation stalls, the Fed would "need to do more."
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Pointed out the CPI's rise to 3.7% in August, with core CPI (minus food and energy prices) rising at a 4.3% annual pace in the same month, both higher than the 2% goal.
Christopher Waller (Fed Governor):
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Believes the central bank is in a position to monitor the situation regarding rates and thinks the Fed can afford to observe rate developments without immediate action.
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Observes rising bond yields as beneficial, suggesting they are "doing some of the work for us."
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Expects 3Q GDP to possibly exceed 4%, indicating a strong economy.
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Anticipates inflation returning to target levels if current trends persist and describes recent inflation data as very positive.
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Emphasizes the resilience of the job market despite strict Fed policies.
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Does not view China's CBDC as a significant threat to the Dollar's reserve currency status.
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Doesn't foresee a direct connection between Middle East unrest and Fed policy, barring a larger-scale conflict.
The EURUSD pair remains within the psychological zone of 1.06. Source: xStation 5
