MNI BRIEF: Fed's Bostic Repeats View Of One Cut In 2025

Atlanta Fed President Raphael Bostic said Thursday his modal forecast still includes one 25-basis-point cut for 2025 and implied more moves in 2026 toward neutral. 

"This year, GDP growth is going to be relatively tepid. And then next year we'd start to see energy come back, such that we would be in a position, we being the Fed, to start to bring our policy position back to a more neutral stance," Bostic said. "We're marginally restrictive. I don't think we're super restrictive in terms of where we are right now." 

In June’s SEP, Bostic had one cut for 2025.

“That's kind of still where I am, but I would just say, in today's world, every point estimate, our forecast has a wide confidence band around it, and so I'm not stuck on anything. (See: MNI INTERVIEW: Fed Should Hold, Focus On Inflation - Emmons) 

" I want to move one direction and not be ratcheting up and then coming back down and going up and going down," he said at an Atlanta Chamber meeting. "The toggling approach, historically has caused people to lose confidence in our ability to meet our mandates."