Fed’s Bostic: Expect stress in the jobs market when inflation is falling toward target
|“I expect to see stress in the jobs market when inflation is falling toward target,” said Federal Reserve (Fed) Bank of Atlanta President Raphael Bostic late Wednesday in a media interview shared by Marketplace per Reuters.
Additional comments
FOMC will base its interest rate decisions on data.
Fed does not want to be locked into a pre-determined rate path.
Its problematic for the economy if the Fed doesn't achieve 2% inflation target.
Best case scenario is the Fed will not consider a rate cut well into 2024.
Market reaction
EUR/USD remains on the backfoot around 1.0747 following the news, down for the third consecutive day to around fresh two-month lows.
Also read: Fed's Waller: Need to maintain flexibility on best policy decision for June meeting
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