Atlanta Fed President Bostic pointed to 2025 for normalization
While the cost of borrowing in the US remains high, Fed members continue to avoid signaling a decrease in this cost in the near future.
Atlanta Fed President Raphael Bostic stated that he is hopeful that the very high price pressure seen during the Covid-19 pandemic will return to normal, but pointed to 2025 for this normalization.
“We still have a long way to go to reduce the significant price increases seen in the last few years,” Bostic told a conference on Wednesday.
Bostic pointed to the fourth quarter of this year to prepare for a rate cut. In the Beige Book published by the Fed on Wednesday evening, it was noted that economic growth moderated as consumers cut back on their spending in the face of high prices.
The Fed stated that the business representatives it interviewed for the report reflected the view that consumers oppose additional price increases.