Atlanta Fed President Bostic Signals Possible September Rate Cut

Raphael Bostic, President of the Atlanta Federal Reserve, indicated openness to an interest rate cut as early as September. Highlighting the importance of timely action, Bostic suggested a half-point rate reduction in response to cooling labor market trends. Financial markets anticipate rate cuts during the Fed's September meeting.

Raphael Bostic, President of the Atlanta Federal Reserve, has shown openness to an interest rate cut in September, as mentioned in an interview with the Financial Times on Thursday. He emphasized the urgency for the U.S. central bank to act swiftly in easing monetary policy.

'I'm open to something happening in terms of us moving before the fourth quarter,' Bostic stated. This marks a shift from his earlier stance this week, where he said he needed more data before supporting lower interest rates.

U.S. consumer prices saw moderate growth in July, and annual inflation slowed to below 3% for the first time in nearly 3-1/2 years, increasing the likelihood of a rate cut next month. Financial markets widely expect the Fed to lower rates during its Sept. 17-18 meeting. Bostic also raised concerns over a cooling labor market, advocating for a possible rate cut of half a point if the labor market deteriorates faster than anticipated.

(With inputs from agencies.)