Atlanta Federal Reserve President Raphael Bostic on Friday said he doesn’t envision interest rate cuts happening until well into 2024. Though he cited progress on inflation and a slowing economy, the central bank official told CNBC that there’s still a lot of work to be done before the Fed reaches its inflation goal of 2% annually. “I would say late 2024,” Bostic replied when asked for a time frame when the first decrease could come. The Fed has raised its key borrowing rate 11 times since March 2022 for a total of 5.25 percentage points. While Bostic said he doesn’t see policymakers easing anytime soon, he has been explicit in insisting that rates have hit a “sufficiently restrictive” level where they don’t need to be raised anymore. However, he cautioned that the road back to acceptable levels of inflation could be a long one.
Source: Economy
