Fed's Bostic Comments:
- "I am not in a hurry" to cut rates; want to ensure policy easing is "unambiguous."
- Would rather wait longer for a rate cut to ensure inflation does not start to bounce around.
- Fed has to be cautious about the first rate move; it may need to be later to avoid stoking "pent-up exuberance" for investment and other spending.
- Though businesses are confident about the economy, they don't feel they have the same pricing power as even six months ago.
- Upcoming framework review will be "robust" given the number of open questions about the economy and policy.
- No longer hearing about difficulties in supply chains; hope is that goods deflation continues.
- Expecting inflation to decline but "relatively slowly"; would not expect a rate cut before the fourth quarter.
- Fed's highest priority is to get inflation back to 2%.
- Efficacy of monetary policy may be weaker than in the past, but it is still having an impact.
- Policy is impacting rate-sensitive sectors and delaying investment.
- Businesses are confident in the underlying strength of the economy; the next year or two should see continued solid performance.
Bostic has been speaking almost daily. He wants to wait which is the consensus of Fed officials. He is wearing the uniform of the Fed.
