Posted 3/4/2024, 5:00:26 PM
Bostic: One Rate Cut Then Pause to See Impact, Worried Demand May Stoke Inflation
- Bostic expects one rate cut in Q3, followed by a pause to assess impact
- He's worried businesses may unleash new demand after a rate cut, adding price pressures
- Bostic wants to keep reducing Fed balance sheet at current pace for as long as possible
- Businesses revving up spending at hint of rate cut could boost inflationary pressures
- Bostic hopes Fed can reduce inflation to 2% target without a recession, which would be a "resounding success"
