Fed Remains Patient on Rates Despite Growing Economic Risks

• Fed feels no urgency to cut rates yet due to economic strength

• Bostic expects 2 rate cuts by end of year, but wants more progress on inflation first

• Concerned about risk of demand surge causing inflation to overshoot 2% target

• Sees signs of stress among lower income consumers from high inflation

• Worried "pent-up exuberance" could unleash new demand and spur more inflation