Bostic sees just one rate cut this year on expectations for bumpy inflation

Published 24/03/2025, 19:44
© Reuters

Investing.com -- Atlanta Federal Reserve Raphael Bostic said Monday he cut his forecast to one rate rate cut this year amid economic uncertainty and "very bumpy" inflation.    

Bostic changed his forecast to one rate cut from two previously, citing expectations for “very bumpy” inflation this  year.

The Atlanta Fed president said he doesn’t see inflation returning to target until "some time in 2027". 

Economic uncertainty has also played a role in mudding the outlook at a time when consumer sentiment has flagged worries about a slowdown in the economy. 

Bostic said he monitoring consumer sentiment closely as to whether it will a leading indicator or not.

The remarks come a week after the Fed’s March meeting, in which the central bank its benchmark rate as well as its forecast for two rate cut unchanged. 

 

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