Federal Reserve Bank of Atlanta President Raphael Bostic has reportedly revised his forecast, anticipating only one interest-rate cut this year, likely occurring later than initially anticipated.

The Atlanta Fed chief previously advocated for two rate cuts in 2024, suggesting the first cut might occur in the summer, Bloomberg reported.

Bostic informed reporters in Atlanta on Friday that it was a “close call.”

“We will have to see how the data come in over the next several weeks,” he added.

Fed officials, maintaining interest rates for a fifth consecutive meeting Wednesday, narrowly upheld their outlook for three interest-rate cuts this year. Chair Jerome Powell stated that central bankers anticipate gaining confidence in inflation reaching the 2% goal, with the first reduction likely to occur “at some point this year.”

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Former U.S. Treasury Secretary Larry Summers has openly criticized the Federal Reserve’s hints of impending interest rate cuts recently, questioning the necessity of such actions amid a strong economy and ongoing inflation worries.

During an appearance on Bloomberg Television’s Wall Street Week, Summers expressed perplexity over the Fed’s current stance, especially considering the healthy state of the economy and financial markets.

“My sense is still that the Fed has itchy fingers to start cutting rates, and I don’t fully get it,” Summers said.

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Meanwhile, Bostic expressed diminished confidence in the inflation trajectory compared to December, citing “some troubling things” beneath headline figures.

He specifically highlighted the wide range of items in the consumer basket experiencing elevated price increases.

A crucial measure of underlying inflation exceeded expectations for the second consecutive month in February, while the Fed’s preferred gauge, to be released next week, is expected to reveal continued high price pressures, Bloomberg reported.

While policymakers project the federal funds rate to reach 4.6% by the end of 2024, individual expectations vary. The Fed’s “dot plot” revealed that 10 officials anticipate three or more quarter-point cuts this year, while nine expect two or fewer.

“The economy continues to deliver surprises and it continues to be more resilient and more energized than I had forecast or projected,” Bostic said.

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