Fed Bostic: Risks to Employment and Inflation Goals Now Balanced

Atlanta Fed President John Bostic said price stability and maximizing employment are now in balance for the first time since 2021, but added that he is “not ready” to declare a victory over inflation. In an article released Wednesday by the Atlanta Fed, Bostic said, “Although inflation has fallen sharply, risks to achieving the price stability mandate remain. We must remain vigilant.” “Premature easing of policy is a dangerous gamble.” He did not specify whether he would agree to a 25 basis point rate cut at the September meeting. There are also some risks to the labor market if it waits until inflation is all the way down to 2 percent before cutting rates, he said.