Fed's Bostic: Restrictive is 3.5-3.75%. Want to get there then hold steady

• We need to make sure we don't overreact
• We have to narrow the demand supply imbalance. Hopeful the supply side can do some of the work
• I'd be comfortable just saying at 3.5-3.75% and just staying there and hopefully that does it
• It's premature to think about cutting
• I'm starting to use the word more 'resolute' and only let exceptional outcomes drive a move from there
• We're starting to see some positive signs, particularly on the goods side, which is coming down dramatically
• Today's PCE report makes me lean a little more towards 50 bps but lots of data to come

We heard from Bostic yesterday so there's no big surprises here. What I'll note is that -- once again -- this is a Fed official saying that they're going to hold rates for longer at higher levels. To me, that's obviously a Fed communication strategy and a preview of what Powell will say.

The US dollar US Dollar The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel Read this Term dipped on PCE but has come back with market participants afraid to get caught offside by Powell.