Federal Reserve Boston: Risks to employment and inflation targets are now balanced
Atlanta Fed President Bostic said that since 2021, the balance between stable prices and maximizing employment has now been achieved for the first time, but he added that he is "not ready yet" to declare victory over inflation. Bostic said in an article released by the Atlanta Fed on Wednesday, "Although the inflation rate has dropped significantly, the risks of achieving the price stability mandate still exist. We must remain vigilant." "Prematurely easing policy is a dangerous gamble." He did not explicitly state whether he would agree to a 25 basis point rate cut at the September meeting. He said that if the rate of inflation continues to decline all the way to 2% before cutting rates, there would also be some risks to the labor market
On September 4th, according to data from FXStreet, Raphael Bostic, President of the Federal Reserve Bank of Atlanta, stated that since 2021, the balance between stable prices and maximizing employment has now been achieved for the first time. However, he added that he is "not ready yet" to declare victory over inflation. In an article released by the Federal Reserve Bank of Atlanta on Wednesday, Bostic said, "Despite a significant decline in the inflation rate, risks to achieving the price stability mandate remain. We must remain vigilant." "Prematurely easing policy is a dangerous gamble." He did not explicitly state whether he would agree to a 25 basis point rate cut at the September meeting. He mentioned that if the inflation rate continues to decline all the way to 2% before cutting rates, there would also be some risks in the labor market