The Atlanta Fed chief said that he doesn’t currently expect a rate hike will be needed at the next policy meeting in September.
Bostic said that he would have likely “grudgingly” supported last week’s rate hike if he were a voter, even though he had publicly questioned the need for one beforehand.
“Things to date seem to be evolving in a way that’s consistent with the notion of an orderly slowdown, which is quite promising,” he said. “In terms of policy, I think all of these facts argue for us being cautious, patient and resolute.” Bostic said that while his baseline view hasn’t changed, the Fed will get lots of additional data by September, and he would be willing to adjust his view for that meeting if the data comes in contrary to his expectations.
Policymakers in recent days have said they’re waiting on incoming data to guide their decision on whether to raise rates at the Fed’s next gathering. The latest surprisingly mild inflation reports, signs of moderating consumer spending and evidence of diminishing wage pressures have suggested there’s little urgency to raise rates next month, according to Bloomberg.
The Federal Open Market Committee (FOMC) meeting is a regular session held by the members of the Committee, a branch of the Federal Reserve that decides on the monetary policy of the United States. After deliberating on short-term monetary policy, the FOMC will decide on a target federal funds rate that they believe will achieve their aims.
The US Department of Labor said in a report on Tuesday that job openings, a measure of labor demand, dropped 34,000 to 9.582 million as of the last day of June, the lowest level since April 2021.
Furthermore, job openings for May were revised downward to 9.616 million instead of the previously reported 9.824 million.
Hiring fell to the lowest level since February 2021. But layoffs also eased, to the lowest since the end of last year, suggesting employers are reticent to let go of staff, the report added. (QNA)
Source: Qatar News Agency
