PiCK

Atlanta Fed President "December rate cut is not a foregone conclusion… will be decided based on data"

Suehyeon Lee

Summary

Raphael Bostic, president of the Federal Reserve Bank of Atlanta, said he took a cautious stance on prospects for a December rate cut.
Bostic emphasized that all FOMC meetings are decided in real time based on data.
He said the dot-plot figures merely reflect a range of views and should not be over-interpreted, and that policy decisions will be made cautiously based on data.

*Raphael Bostic, President of the Federal Reserve Bank of Atlanta. /Photo=Hankyung DB*

Raphael Bostic, president of the Federal Reserve Bank of Atlanta, took a cautious stance on prospects for a December rate cut.

On the 1st (local time), according to O'Daily, Bostic said in a speech at a Dallas Fed meeting, "All Federal Open Market Committee (FOMC) meetings are real-time decision-making processes, and we do not set a direction in advance or deviate from the principle of data dependence."

He said that while markets are showing strong expectations for a year-end rate cut, he judged that Chair Powell's clear statement after this week's policy meeting that a December rate cut is not certain was a prudent move.

Bostic emphasized, "The dot-plot figures merely reflect a range of views and should not be over-interpreted," and "policy decisions will be made cautiously based on data."