Fed's Bostic: We Are Close to Being Ready to Cut Interest Rates

Reuters08-23

Aug 23 (Reuters) - The Federal Reserve is on the cusp of being in a position to start lowering its benchmark interest rate, Atlanta Fed President Raphael Bostic said on Friday.

"We are close...the numbers are starting to move in a direction which suggest that our policy has had its effect and we can start the pathway back to a normal policy posture," Bostic said in an interview with broadcaster CNBC.

"We can't wait until inflation is at 2% itself to start moving," Bostic added. "The data has come in in a way that would suggest that it's going to be appropriate to be closer to moving (interest rates) than further and for me I just want to make sure the next couple of data points are consistent with that."

Financial markets widely expect the U.S. central bank to begin reducing borrowing costs at its next policy meeting on Sept. 17-18. Bostic has previously said he's open to supporting a rate cut then.

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Comments

  • Basics101
    08-25
    Basics101
    Gotta get the interest rate down so the government can borrow some more. 
  • Dr Rck
    08-23
    Dr Rck
    Why? Is it too expensive to live in a 'healthy labour workforce' business environment while layoffs are still ongoing for some companies. Btw, how soon will companies rehire those retrenched workers and see a healthy rise in employment rate? Will the Fed continue to use fiscal policy to spend more on strategic sectors at the same time interest ratea are cut because these two may increase price pressure again and budget deficit even more? I think govt budget will be tighten while interest rate begins cutting which means there will be far less jobs in time to come as previously jobs were very much supported by govt spending? So oops, expect soft if not hard landing to come folks!!
    • LiverpoolRed: 
      Thanks for sharing
    • Dr Rck: 
      But trends had shown that stock market will rise for the next two weeks before retreating of earning reports are bad!
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