According to ChainCatcher, Fed Chairman Bostic said that inflation has dropped significantly from its peak in 2022, but recent data is still far from the central bank's 2% target. He emphasized the focus on reducing inflation in the short term.
Bostic said officials began discussing where long-term interest rates would settle and pegged the neutral rate at 3% in their latest summary of economic projections released in June.
He reiterated that his expectation of an earlier rate cut has been made, but he would rather wait for more data to confirm economic trends rather than cut rates prematurely and avoid raising rates again when inflation re-accelerates.
