• 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.”

https://www.reuters.com/markets/us/feds-bostic-no-urgency-cut-interest-rates-given-us-economys-strength-2024-03-04/