On June 28, Caixin learned that (editor Xia Junxiong) on Thursday local time (June 27), Atlanta Fed President Bostic said that as there are signs that inflation has started to fall again, he still expects only one rate cut this year, which will occur in the fourth quarter, consistent with his view in March.

Bostic pointed out that details in April and May inflation reports in the US showed that inflation rates were moving towards the Fed's target of 2%. He also said that labor market and inflation risks have become more balanced in recent weeks.

"Inflation remains a primary concern, but the risks on both of our mandate goals are becoming more balanced and we have to take account of that," he said.

Bostic emphasized that he would only understand what happened through data.

The Fed kept interest rates steady at this month's rate meeting, maintaining its benchmark interest rate at the highest level in 23 years, between 5.25% and 5.5%, a range that has remained unchanged since July last year. The Fed also predicted that it would only cut interest rates once this year, significantly lower than its forecast of three rate cuts in March.

On the day the Fed announced its June rate decision, the US Labor Department released CPI data for May, which was significantly below expectations and significantly boosted market sentiment. Bostic said he had not changed his forecasts during the meeting.

Although still insisting on only one rate cut this year, Bostic also said that it is possible to either cut interest rates more often or not cut interest rates at all, or even raise rates further, and that he will be guided by data and actual situations.

Regarding the monetary policy trend for 2025, Bostic expects four rate cuts next year, but he also emphasized that he does not have much confidence in such distant forecasts.

Bostic expects the Fed to reach its 2% inflation target next year, but it may be slightly later.

"This is a longer-term trend, and the Fed may not achieve the 2% target in the next 12 months," he said, "It will be a much longer journey, which is why I advocate patience and vigilance."

Bostic pointed out that due to the influence of the first half of the year's base, the annual inflation rate may show slower progress in the second half of the year, but a wide range of data must be taken into account when evaluating progress. He also said that he has recently been paying close attention to a decline in the breadth of price increases.

Bostic has the right to vote on this year's monetary policy.

Editor / jayden