Federal Reserve Bank of Atlanta President Raphael Bostic was early to tip (many) bucketloads of cold water on the idea of multiple, near-term, FOMC rate cuts, and he is still beating expectations down:
- Pleased with inflation progress in April but Fed is not yet there
- Lower shelter inflation was a significant development
- One data point is not a trend
- Says remains "resolute" and "vigilant" about inflation
- There is still a lot of pricing pressure in the economy
- Hearing businesses say they are at the limits of pricing power and not able to fully pass-through input costs
- Outlook right now is for continued fall in inflation, which would make appropriate to reduce rates later in the year, but nothing not locked in
- Have to be open to a broad range of possibilities, with "a number of different scenarios" that could play out
