Bostic Sees Fed at Neutral in Maybe One or Two Rate Cuts

• Bostic's December projections included no rate cuts for the year ahead.
• He believes the economy has 'so much momentum' and the policy rate should remain 'mildly restrictive'.
• He suggests 'maybe one or two cuts' would bring the policy rate to neutral, but advises patience due to data volatility and the need to ensure inflation returns to 2%.

Atlanta Fed President Raphael Bostic shared a cautious policy outlook, indicating no projected rate cuts for the current year from his December forecast. He emphasized maintaining a mildly restrictive policy due to strong economic momentum and the need for patience to ensure inflation returns to the 2% target, suggesting only one or two cuts might be needed to reach a neutral stance.