On December 3, according to Caixin (edited by Zhao Hao), Raphael Bostic, a 'hawkish' official of the Federal Reserve, stated that although he believed the Fed should continue to lower interest rates, he has not yet made up his mind to support a rate cut this month.

On Monday local time (December 1st), Bostic published an article on the official website of the Atlanta Fed, stating,The Federal Open Market Committee (FOMC)(FOMC) The risks of achieving the dual goals of maximum employment and price stability have changed, and they are roughly in balance, so "we should also start shifting monetary policy towards a position that does not stimulate or inhibit economic activity."

Bostic believes that despite fluctuations in the data, US inflation is steadily moving towards the Fed's 2% target. He also stated that there are no signs of rapid deterioration in the labor market, but policymakers need to remain vigilant about the risks to inflation and employment.

Source: Federal Reserve Bank of Atlanta official website

In a phone call with the media, Bostic stated, "I will continue to reserve the right to choose," whether to support a rate cut when central bank officials gather in Washington on December 17-18.

Since September, the Fed has successively cut rates by 50 basis points and 25 basis points, lowering the federal funds rate target range to between 4.5% and 4.75%. Several officials have expressed support for a more gradual pace of rate cuts in the coming months.

Bostic mentioned that he also supports this type of rate cut, as inflation is expected to reach the Fed's 2% target. He also noted that the decrease in job vacancies proves that restrictive monetary policy is helping to cool off the labor market, but overall, the labor market remains stable.

"These trends have not sent a strong signal that the labor market is rapidly deteriorating, nor have they sent an extremely tense signal. Instead, they indicate that in the face of high interest rates, the labor market is cooling off in an orderly manner, and we have also heard this view from business contacts."

Bostic listed several reasons he believes inflation will continue to decline, mentioning that weak rents should ultimately drive down housing inflation - a key focal point of overall price pressures over the past year. But he also stated, "there is definitely upward price risk."

When asked if President-elect Trump's potential tariffs would impact his economic outlook, Bostic stated that he would require staff to wait until fiscal policy became clearer before making a decision.

"Over the past six to seven years, what we have seen is that many proposals have been put forward, but there have been significant changes during the deliberation process."

Editor/Lambor