Fed Atlanta Fed Pres. Bostic: Fed’s top priority is to bring inflation to 2%

Bostic comments from the Fed:

• “I’m in no rush” to cut rates; want to ensure that policy easing is “unambiguous”.
• I would prefer to wait longer before a rate cut to ensure inflation doesn’t start to rebound.
• The Fed must be careful during the first rate movement; this may need to be done later to avoid fueling “pent-up exuberance” when it comes to investing and other spending.
• Although businesses are confident in the economy, they don’t feel they have the same pricing power as they did six months ago.
• The next revision of the framework will be “robust” given the number of open questions on economics and politics.
• Stop hearing about difficulties in supply chains; the hope is that asset deflation will continue.
• Expect inflation to fall, but “relatively slowly”; wouldn’t expect a rate cut until the fourth quarter.
• The Fed’s top priority is to bring inflation down to 2%.
• The effectiveness of monetary policy may be lower than in the past, but it continues to have an impact.
• The policy impacts rate-sensitive sectors and delays investments.
• Businesses have confidence in the underlying strength of the economy; the coming years should see continued strong performance.

Bostic speaks almost daily. He wants to wait, which is the consensus of Fed officials. He wears the Fed uniform.