Fed's Bostic
- Higher long-term rates not impacting business beyond what would happen in a normal tightening cycle
- Says he sees the next move as a single quarter-point rate cut late next year
- Sees inflation approaching 2% target by end of 2025
- Still 'work to do' but confident underlying price trends are slowing
- Share of goods with faster price increases has declined; businesses agree slowing trend likely to continue
- 'Signs of balance' also coming to labor market, with slower jobs growth
- Businesses say it's getting easier to hire and wage growth likely to slow
- Energy prices and geopolitics pose upside risks to inflation
- Assessing need for below-trend GDP growth to cure inflation depends on other trends like productivity
Isn't it a bit early to be weighing in on higher long-end rates? The move only started a month ago.
