The president of the Atlanta Federal Reserve, Raphael Bostic, voiced concern on Wednesday about the direction of inflation and signaled that he sees interest rate cuts starting at the end of the year.
In a recent interview, the central banker noted that strong productivity, a recovery in the supply chain, and a resilient labor market suggest that inflation will decline "much more slowly than many expected."
"If the economy develops as I expect, that is by seeing the continuity in the KDN, unemployment, and the slow decline in inflation throughout the year, I feel that the rate reduction will happen at the end of this year, which is the fourth quarter," he said.
Bostic's comments came as other Fed policymakers also indicated a desire to tread cautiously on rate cuts. They have indicated that a strong economy and slow inflation give them time to see more evidence on the direction of inflation.
However, the Federal Open Market Committee (FOMC), of which Bostic is also a voting member, indicated last month that it sees three rate cuts coming this year.
