WASHINGTON – Federal Reserve officials, including Atlanta Fed's Rafael Bostic, expressed caution about the pace of future interest rate cuts and emphasized the importance of a systematic approach to avoid unpredictable inflation trends. did. Given recent economic data and world events, there is consensus among Fed members that it is prudent to move gradually toward the central bank's 2% inflation target.
In recent remarks, Bostic outlined the outlook for inflation to stabilize at around 2.5% by the end of the year, with the goal of 2% by 2025 potentially being achieved. The forecast follows the latest Consumer Price Index (CPI) figures. , showed that inflation would rise to 3.4%. The Fed's cautious stance is further justified by external pressures on the economy, particularly the Houthi attack on the Suez Canal, which has led to sharp increases in transportation costs.
Even though the U.S. boasts a strong labor market with a low unemployment rate of 3.7%, Bostic and others argue for a focus on curbing inflation. He suggested that given the current economic situation, it is justified to keep interest rates at current levels to closely monitor inflation trends.
As the Fed grapples with its dual mandate of promoting maximum employment and stabilizing prices, recent comments from Bostic and other officials highlight the complexity of the Fed's decision-making process in a changing global economic climate. I have to. The Fed's cautious approach is aimed at steering the economy toward stable inflation without disrupting the ongoing recovery.
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