• The U.S. Federal Reserve is under no urgent pressure to cut interest rates given a “prospering” economy and job market, Atlanta Fed President Raphael Bostic said in remarks that highlighted the risk inflation may get stuck above the central bank’s 2% target or be sent even higher by “pent-up exuberance.”
  • Bostic said he still thinks it will likely be appropriate for the Fed to approve two quarter-point rate cuts by the end of this year.
  • But he also said the Fed was walking a “fine line” to be sure that current economic strength does not evolve into “froth” and a new round of inflation.
  • Before rate cuts “I need to see more progress to feel fully confident that inflation is on a sure path to averaging 2% over time.”