ChainCatcher news, 2027 Federal Open Market Committee (FOMC) voting member and Atlanta Fed President Raphael Bostic stated that the impact of President Trump's policies and other factors on the economy may take several months to become clear, indicating that officials may keep interest rates stable at least until late spring.Bostic reiterated that changes in Trump's policies could affect the economy in different ways, increasing economic uncertainty. He mentioned that the new policies of the Trump administration are placing the U.S. economy in "incredible volatility," and he believes the Federal Reserve is unlikely to have enough clarity to determine the direction of interest rates before late spring or summer.

ChainCatcher news, according to Caixin, Federal Reserve's Bostic stated that confidence in the economic outlook for 2025 has decreased. It is difficult to incorporate all potential policy changes into the economic outlook; unexpected inflation developments are not expected to follow a linear trajectory.The Federal Reserve did not significantly cut interest rates last year, and the policy remains somewhat restrictive; there is satisfaction with pausing rate cuts to observe economic developments. The Federal Reserve is approaching the threshold level of its balance sheet, with the debt ceiling being a factor in determining this; there is a desire to regularly monitor the balance sheet to ensure that asset shrinkage does not become excessive.

ChainCatcher news, according to Jinshi Data, Atlanta Federal Reserve President and FOMC voting member Bostic stated that when updating the Fed's dot plot in September, he expects the Fed will only cut rates by another 25 basis points this year.However, he mentioned that his predictions are not set in stone and he will adjust them as necessary based on upcoming inflation and labor market data. The Fed cut rates by 50 basis points in September and is expected to implement a series of rate cuts over the next year to alleviate some of the policy constraints imposed to reduce inflation.

ChainCatcher news, according to The Wall Street Journal, Federal Reserve's Bostic is open to not lowering interest rates in November.

ChainCatcher message, Federal Reserve's Bostic stated that he is willing to consider a further 50 basis point rate cut if the labor market shows unexpected weakness. The baseline expectation is for a "orderly" easing of policy, with inflation expected to continue to slow and the labor market to remain stable. Since the core PCE index remains at 2.7%, he does not want to be overly confident about inflation and will closely monitor the upcoming employment data; if job growth is significantly below 100,000 positions, a deeper exploration of the current situation will be necessary.

ChainCatcher news, Federal Reserve's Bostic stated that the inflation rate has significantly decreased from its peak in 2022, but recent data is "still far from" the central bank's 2% target. He mentioned, "To bring inflation back to target, I have been highly focused on the short term." Bostic noted that officials have begun discussing what level interest rates will stabilize at in the long term, adding that he set the neutral rate at 3% in the latest economic forecast summary released in June. Just a day earlier, the Atlanta Fed president reiterated that his expectations for the timing of rate cuts have been brought forward. He added that he would prefer to wait for more data to confirm economic trends rather than cut rates too early, only to have to raise them again when inflation accelerates.

ChainCatcher news, according to Jinshi reports, Atlanta Fed's Bostic stated in an interview at Jackson Hole that an early rate cut may be appropriate. When asked if he supports more than one rate cut this year, he said it is possible.

ChainCatcher news, according to Jinshi reports, Federal Reserve's Bostic stated that the Fed is "close" to the timing of interest rate cuts, and the decline in inflation has exceeded expectations, so it makes sense to adjust the view on rate cuts in advance. Possibly influenced by this news, U.S. Treasury yields have slightly decreased.

ChainCatcher news, Federal Reserve's Bostic stated that the pricing power in the service sector is declining, but he still believes that housing inflation will return to normal. He thinks that the Federal Reserve can achieve the 2% inflation target while the labor market remains tight by historical standards. He wants to be absolutely certain that the inflation rate will return to 2% before the first rate cut, which should be seen as the first step in a series of rate cuts. Bostic expects a rate cut in the fourth quarter of this year and anticipates a total of 100 basis points in rate cuts next year, meaning there will be four quarterly cuts in 2025, each by 25 basis points.

ChainCatcher news, according to Jinshi reports, Federal Reserve's Bostic stated that the narrowing range of inflation will increase the confidence in the Fed's interest rate cuts, and the fourth quarter may be the timing for the Fed to cut rates. Patience is needed, as consumers are less sensitive to high interest rates.

ChainCatcher news, according to Jinshi reports, Federal Reserve's Bostic stated that although the timing is uncertain, he still believes that the Federal Reserve will implement a rate cut this year. The optimistic inflation relief will continue, although returning to the Federal Reserve's 2% target may take until the end of next year or early 2026. There is less consideration for the extent of rate cuts this year, with more focus on ensuring a timely start to easing policies.

ChainCatcher message, Federal Reserve's Bostic stated that the Fed must balance its dual mandate, and premature rate cuts could be more destructive. We need to see progress in inflation retreating, and three rate cuts in 2024 align with my thoughts. (Jin Ten)

ChainCatcher message, Federal Reserve's Bostic reiterates that only one rate cut is expected this year. (Jin Shi)