financetom
Economy
financetom
/
Economy
/
Atlanta Fed President Sees 'Some Troubling Thing,' Now Calls For Just 1 Rate Cut In 2024
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Atlanta Fed President Sees 'Some Troubling Thing,' Now Calls For Just 1 Rate Cut In 2024
Mar 23, 2024 7:52 AM

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.”

Also Read: Federal Reserve Pushes Stocks To Record Highs As Rate Cuts Loom, Nvidia Rallies, Apple Faces Legal Woes: This Week In The Markets

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.

Also See: Fed’s Dovish Stance Ignites Market Rally: ‘Everybody Is Bullish,’ Veteran Wall Street Investor Says

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.

Read Next: GOP Berates Marjorie Taylor Greene’s Move To Oust House Speaker Mike Jhonson: ‘This Isn’t Good’

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image generated using artificial intelligence with Midjourney.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
U.S. companies' stock purchases via buybacks, M&A to hit 6-year high in 2024, Goldman says
U.S. companies' stock purchases via buybacks, M&A to hit 6-year high in 2024, Goldman says
Mar 22, 2024
(Reuters) - U.S. companies' purchases of domestic equities through more stock buybacks and corporate acquisitions will hit a six-year high of $625 billion this year, about as much as mutual funds and pension houses will offload, Goldman Sachs said. A surge in share buybacks and continued growth in cash mergers and acquisitions (M&A) will be the primary drivers of corporate...
US Dollar Improves Early Friday Ahead of Fed Appearances, State Unemployment
US Dollar Improves Early Friday Ahead of Fed Appearances, State Unemployment
Mar 22, 2024
07:38 AM EDT, 03/22/2024 (MT Newswires) -- The US dollar rose against its major trading partners early Friday, except for a decline versus the yen, ahead of a series of appearances by Federal Reserve officials that compensate for a lack of major US data. Fed Chairman Jerome Powell is scheduled to make opening remarks at a Fed Listens conference at...
US Congress scrambles to pass $1.2 trillion spending bill, midnight deadline looms
US Congress scrambles to pass $1.2 trillion spending bill, midnight deadline looms
Mar 22, 2024
WASHINGTON (Reuters) - The Republican-controlled U.S. House of Representatives and Democratic-majority Senate on Friday will scramble to beat a midnight government shutdown deadline by passing a $1.2 trillion bill keeping the government funded through September. If they succeed, it will end a more-than-six-month battle over the scope of Washington's spending for the fiscal year that began Oct. 1. If they...
Fed Chair Powell says pandemic has had lasting effects on economy
Fed Chair Powell says pandemic has had lasting effects on economy
Mar 22, 2024
(Reuters) - Federal Reserve Chair Jerome Powell on Friday opened a Fed Listens event on how Americans are experiencing the economy, saying the pandemic has had lasting effects and that to make good policy the U.S. central bank cannot rely only on macroeconomic data but needs to hear directly from people and businesses. He did not make any remarks about the...
Copyright 2023-2024 - www.financetom.com All Rights Reserved