Raphael Bostic, the President of the Atlanta Federal Reserve, has projected only one more interest rate cut this year.

What Happened: Bostic revealed his projection at an event in Atlanta, stating that he anticipates a single additional interest rate reduction of 25 basis points for the remainder of the year. This is a deviation from the median projection of 50 basis points more, Reuters reported on Wednesday.

“The median was for … 50 basis points more, above and beyond the 50 basis points that was done in September. My dot was 25 basis points more,” said Bostic.

The Federal Reserve had previously reduced rates by 50 basis points in September, with further reductions expected over the next year to alleviate some of the policy restraints imposed to lower inflation.

Bostic, however, emphasized that his projection is not set in stone and will be adjusted as necessary in response to incoming data on inflation and the job market.

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Why It Matters: The potential rate cut projection by Bostic follows a series of events that have shaped the Federal Reserve’s current stance. In August, Bostic expressed caution regarding rate cuts, emphasizing the need for confirmation from upcoming economic reports.

In September, Bostic faced scrutiny after a Jerome Powell-led investigation revealed breaches of FOMC rules, potentially affecting his impartiality.

Additionally, recent economic data has influenced the Fed’s cautious approach. The September jobs report showed stronger-than-expected payroll growth, complicating the case for aggressive rate cuts.

Moreover, Fed Governor Christopher J. Waller recently expressed concerns over inflation data, urging caution in proceeding with rate cuts.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote