FED'S BOSTIC: SOFT LANDING HARDLY ASSURED, EXPECTS TWO QUARTER-POINT CUTS IN 2024

Atlanta Federal Reserve (Fed) President Raphael Bostic hit newswires on Monday after his quarterly essay was released.

Key highlights

• Soft landing is hardy assured given uncertainty.
• Does not anticipate back-to-back rate cuts when they begin.
• Fed's Bostic still expects two 25-basis point rate cuts in 2024.
• Needs to see more progress and gain confidence on disinflation before voting to reduce policy rates.
• Inflation is on track to return to 2% target, but still too early to claim victory.
• January's hiring was a fresh sign of continued US labor strength.
• Inflation is still widespread, with more than the usual share of items increasing above 5% with trimmed mean stuck at 2.6%.
• Fed still has time to be sure inflation returns to target.
• Fed's Bostic does not see degradation of the US labor market.
• Risks to inflation and employment have balanced out.
• Pent-up exuberance in US economy remains an inflation risk.
• Businesses are not distressed and are ready to invest.
• Services inflation remains higher, may take longer for adjustments to occur.
• Dopes not have a base case for when it might be appropriate to reduce pace of balance sheet decline