2024-04-14 09:22:47
The President of the Federal Reserve Bank of Atlanta, Raphael Bostic, believes that the American Central Bank should not start lowering the base interest rate before the fourth quarter of 2024, Day.Az reports with reference to Interfax.
In an interview with CNBC, Bostic reiterated his forecast that the Fed will cut rates just once this year, noting the strength of the U.S. economy and slowly easing inflation.
“I think it would be appropriate to start cutting rates later this year, in the fourth quarter,” he said. “If the current trajectory of inflation slows, we will have to be more patient than many expected.”
Currently, the Fed’s base interest rate is at 5.25-5.5%. The median Fed policy forecast released following its March meeting still calls for a 75 basis point rate cut in 2024.
Bostic has voting rights on the Fed’s Federal Open Market Committee (FOMC) this year.