USA's Atlanta State FED President Announced When Interest Rate Cuts Should Begin!

Atlanta FED President Bostic Predicts Interest Rate Cuts Will Be Delayed Until the Fourth Quarter

Bostic's comments differ from the expectations of many of his colleagues at the Federal Reserve, who predicted multiple rate cuts throughout the year.

Bostic emphasized a cautious approach and predicted that only a quarter point interest rate cut would be appropriate for 2024. This forecast contrasts with the more dovish outlook adopted by other Fed officials.

"We've seen inflation become much more volatile," Bostic said. "If the economy develops as I expect, I think it would be appropriate for us to start moving downwards at the end of this year, in the fourth quarter," he said.

While Bostic's comments offered a specific timeline for potential rate adjustments, few other Fed officials have been this explicit in public statements about the interest rate outlook.

Fed Governor Adriana Kugler echoed Bostic's views on the unbalanced nature of recent inflation trends.

Kugler acknowledged the progress made on inflation, but emphasized that disinflationary pressures continue.

Speaking at Washington University in St. Louis, Kugler suggested that rate cuts may be necessary throughout the year if current disinflation and labor market conditions persist.

Kugler refrained from giving details about the timing or size of possible interest rate adjustments, emphasizing the need to be prudent and adaptable in monetary policy decisions.

The disagreements among Fed officials highlight the complexity and uncertainty surrounding the economic landscape.

As policymakers navigate these challenges, market participants await further guidance on the future course of interest rates and the broader monetary policy stance.

Decreasing interest rates should boost popularity of bitcoin and cryptocurrency as an investment instrument (This is not investment advice)