Fed's Bostic signals central bank unlikely to cut interest rates in July

foxbusiness.com:

 Federal Reserve Bank of Atlanta President Raphael Bostic discusses the year-over-year rate of inflation on 'The Claman Countdown.'

Atlanta Federal Reserve President Raphael Bostic on Thursday told FOX Business' Liz Claman that central bankers are unlikely to deliver an interest rate cut in July amid signs that inflation progress has slowed. 

Asked whether there is a scenario in which the Fed would start to ease rates in July, Bostic said, «I'm keeping my eyes on the short-run trajectory, and if we can continue to see that trajectory move forward, I think we will be in a good place. I don't think that's going to be in July.» 

He added that he is looking for economic data that shows the economy is «sufficiently strong» and inflation has moved closer to the Fed's 2% target before supporting any rate reductions, but he noted, «That's not my outlook today.»

FED MEETING MINUTES SHOW SOME 'WILLINGNESS' TO HIKE RATES AGAIN

Still, Bostic – who is a voting member of the 12-person Federal Open Market Committee this year – said he would not wait until inflation falls to 2% in order to start loosening monetary policy. 

Raphael Bostic, president and chief executive officer of the Federal Reserve Bank of Atlanta, speaks during the National Association of Business Economics (NABE) economic policy conference in Washington, D.C., on March 21, 2022.  (Photographer: Valerie Plesch/Bloomberg via Getty Images / Getty Images)

«That would really cause inflation to overshoot, and that wouldn't be ideal,» he said. Bostic anticipates that inflation will come down «very slowly» over the course of the year, and eventually settle around 2% in 2025 or even later.

Officials voted at their most recent meeting in May to hold interest rates steady at