Fed’s Bostic scales back to single rate cut on the year, versus two previously

By Thomson Reuters Mar 22, 2024 | 5:10 PM

ATLANTA (Reuters) – Atlanta Federal Reserve bank President Raphael Bostic said on Friday he now expects just a single quarter-point interest rate cut this year versus two cuts that he had projected previously, a change in his outlook driven by persistent inflation and stronger-than-anticipated economic data.

“I’m definitely less confident than I was in December” that inflation will continue to fall towards the Fed’s 2% target, Bostic said in comments to reporters. This caused him to scale back his outlook for rate cuts and push back the likely start date to later in the year, he added.

(Reporting by Howard Schneider; Editing by Richard Chang)