Federal Reserve's Bostic: Further rate cuts would put inflation and inflation expectations at risk.
TL;DR
Federal Reserve Chairman Bostic warns that further interest rate cuts could risk inflation and inflation expectations, despite a cooling labor market, as he prefers to keep monetary policy unchanged unless signs of a significant economic slowdown emerge.
Tags
On December 17, Federal Reserve Chairman Bostic stated that he had hoped to maintain monetary policy unchanged at the last Fed meeting. If the job market is experiencing a broad cyclical slowdown, then there would be other signs that the economy is weakening significantly. The labor market is cooling, but a significant economic slowdown is not expected.
Further interest rate cuts would push monetary policy into or into an easing phase, thereby jeopardizing inflation and inflation expectations. (Jinshi)