02:23 PM EDT, 08/13/2024 (MT Newswires) -- Atlanta Federal Reserve President Raphael Bostic (voter) said federal funds rate cuts are likely this year, but he needs to see more evidence that the downward trajectory in inflation seen over the last few months is sustained before lowering rates.

Bostic repeated that there are risks to cutting rates too early, particularly the need to raise rates again quickly if inflation rebounds, and risks to cutting too late, though he said that he does not see the possibility of a recession in his outlook. Bostic also said that politics do not play a role in the Fed's decisions and that the FOMC will act as needed regardless of the timing of the election.

Recent comments of note:

(Aug. 10) Fed Governor Michelle Bowman (voter) repeated her previous comments that it may soon be appropriate to "gradually lower" the level of the federal funds rate, but cautioned that acting too soon could undo the progress. She acknowledged the slowing of employment growth seen in the July report, but said that inflation remains the key concern.

(Aug. 9) Boston Fed President Susan Collins (nonvoter) told the Providence Journal that the FOMC could begin to ease policy soon if the inflation data progress as expected.

(Aug. 8) Richmond Fed President Tom Barkin (voter) noted a slowing in hiring in recent months, but said that reflects a return to more normal conditions and has not been accompanied by increased layoffs. Barkin added that he expects further improvement in the inflation data over the coming months.

(Aug. 5) San Francisco Fed President Mary Daly (voter) said that the July employment report is a sign that the labor market is slowing and that interest rate cuts are likely this year, but the data are not a cause for panic. Daly said that more information is needed for making a policy change, which the FOMC will have before the September FOMC meeting, and so she didn't want to contemplate how many rate cuts will be needed this year or even the time of the first cut.

(Aug. 5) Chicago Fed President Austan Goolsbee (nonvoter) told USA Today that the July employment report was disappointing, but not necessarily recessionary. He noted that the Fed's dual mandate from Congress is to maximize employment and stabilize prices and that reacting to market downturns is not part of that mandate.