Bitcoin While it started to rise after the US data announced last week, the latest inflation data balanced the worsening situation.
After these economic data, two Fed member spoke.
Making statements about the course of inflation and the FED’s monetary policy Atlanta Fed President Raphael Bostic and Fed Vice Chairman for Supervision Michael Barr evaluated the data.
FED member Bostic spoke first and stated that inflation will eventually reach the 2% target and that this will take some time.
Stating that the FED is not yet in a position to signal a return on interest rates, that is, to reduce them, Bostic stated that when the time comes, they will reduce interest rates, as other major central banks are currently doing.
Highlights from Bostic’s statement are as follows:
“Inflation data is very up and down.
My prediction is that inflation will continue to fall this year and next year. But we still have a long way to go when it comes to inflation.
FED is open to all possibilities on the economic path. Our policy stance is restrictive.
The risks are really balanced right now.
As data continues to be volatile, prices will fall at a slower pace than many expect. “It will take a little longer than expected for this downward momentum to be reflected in the economy.”
Bostic lastly stated that there is no change in the FED’s forecast regarding interest policy this year. He said he expected a rate cut in the October-December quarter.
Data Disappointing!
After FED member Bostic, Michael Barr also evaluated the inflation data and stated that the US inflation data for the first quarter of 2024 “it was disappointing” told.
Considering these data, Barr stated that the FED still cannot find the evidence it needs to loosen monetary policy, and stated that the FED will continue to wait to reduce interest rates.
“The FED will wait a little longer for the interest rate cuts that the markets are eagerly awaiting. The Fed will remain on hold until it becomes clear that inflation will return to our ultimate goal of 2 percent.
“The Fed’s policy is restrictive enough for now, and we will need to give some more time for our restrictive policy to continue working.”
*This is not investment advice.
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