02:54 PM EDT, 09/04/2024 (MT Newswires) -- Atlanta Federal Reserve President Raphael Bostic (voter) wrote in an essay that he is focused on both sides of the dual mandate now after inflation being the main issue over the last few years.

Bostic said that risks remain to trimming rates too early or too late, but slowing inflation has increased his confidence that it is on the right track toward the 2% goal. He did not indicate whether the Federal Open Market Committee should lower rates or by how much at its Sept. 17-18 meeting.

The Fed's Beige Book reported that only three of the 12 Fed districts saw slight gains in economic activity since mid-July and the remaining nine districts reported "flat or declining activity," a clear downshift from a "slight or modest" growth pace in the previous release. While reports of layoffs have been rare, many firms have been deferring new hiring and wage increases due to uncertainty in the outlook.

Recent comments of note:

(Aug. 29) Bostic said that he wants more information before deciding whether a rate reduction at the Sept. 17-18 FOMC meeting is appropriate, but conceded that the time to lower rates is approaching. Bostic said that he wished to avoid the need to raise rates again if the FOMC lowers them prematurely.

(Aug. 23) Fed Chairman Jerome Powell (voter) said that "the time has come for policy to adjust," noting that the data will determine the timing and pace of rate cuts and suggesting that the balance of risks have shifted, and soft employment is now a bigger concern than inflation. Powell noted recent inflation data have given him more confidence that inflation is slowing toward 2%, referring to comments made earlier in the year that more confidence was needed before rates could be adjusted lower, and said that the FOMC "will do everything we can to support a strong labor market as we make further progress toward price stability."