FED official Raphael Bostic gave some interesting information about the current state of the US economy in a recent statement. Bostic acknowledged that inflation is currently very high and there is still a significant journey ahead to reduce it to the desired level.
“The road to 2% inflation will be slower and bumpier than people expect,” Bostic said. He added that while inflation is moving in the direction the FED wants, progress is slow.
Despite the challenges, Bostic said he is pleased with the current pace of progress. “I'm comfortable being patient. I'm not in a mad rush to get there,” he said.
Bostic also shared his economic outlook and said that he does not foresee any recession on the horizon. As the most important statement, Bostic stated that the FED will not be able to reduce interest rates until the end of the year.
“As we accomplish both tasks, I think the economy will continue to grow,” Bostic said. He also suggested that the Fed could keep interest rates steady as long as the labor market remains afloat.
A recent survey on the subject revealed that 50 out of 100 economists predict that the FED will cut interest rates by 50 basis points in 2024. Meanwhile, 34 economists believe that the reduction will be more than 50 basis points, while four economists predict that there will be no reduction.
*This is not investment advice.