Fed's Bostic Sees Downward Path for Inflation

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Bloomberg Nov 29, 2023 12:12 · 12.2k Views

"I think we'll see further cooling of economic activity and inflation," Federal Reserve Bank of Atlanta President Raphael Bostic wrote in an essay released Wednesday. Mike McKee has more on "Bloomberg Markets."

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Transcript

  • 00:00 Yesterday it was wallet.
  • 00:01 We're now getting comments from Bostic.
  • 00:02 What does Rafael Bostic have to say for himself?
  • 00:05 Well, the markets took Bostic comments yesterday as a sign that maybe it wouldn't be higher for longer longer.
  • 00:11 And today Rafael Bostic is joining in that sort of conversation.
  • 00:15 First, comment gets to
  • 00:17 what Alex said about how
  • 00:19 confusing it is these days.
  • 00:22 Bostic says in an essay published today by the Atlanta Fed that
  • 00:25 one of our economists calls the current economic picture a Rorschach test of conflicting signals.
  • 00:32 You may see a dragon, someone else sees a butterfly.
  • 00:35 People will be talking about that analogy, I'm sure.
  • 00:38 But here's what he goes on to say.
  • 00:39 That matches what Waller was saying yesterday.
  • 00:42 Altogether, the research, data, survey results, and input from business contacts tell me that tighter monetary policy, and tighter financial conditions more broadly, are biting harder into economic activity.
  • 00:54 At the same time, I don't think we've seen the full effects of restrictive policy,
  • 00:58 Another reason I think we'll see further cooling of economic activity and inflation.
  • 01:03 So the two latest Fed speakers suggesting that maybe we are going to see the economy slow down enough that perhaps you could consider rate cuts, although Bostic doesn't mention that
  • 01:14 the same way that Waller did.