...wow, this is dynamite, 1. The Fed won't do 50bps, as that...

...wow, this is dynamite,
1. The Fed won't do 50bps, as that would be moving too fast as they don't want to ever do a U-turn
2. If Bostic has it, the Sept rate cut is not a done deal
3. Market expectations of up to 100bps of cuts in 2024 is looking very premature.

...would the Fed and Powell blindside the market soon after he put out the Fed punch bowl out during the Jackson Hole meeting?
Fed’s Bostic: it is ‘time to move’ on rate cuts, but wants to be sure

Reuters

Federal Reserve Bank of Atlanta President Raphael Bostic on Wednesday said that with inflation down farther and the unemployment rate up more than he anticipated, it may be “time to move” on rate cuts, but he wants to be sure before pulling that trigger.

Bostic said he will want to see confirmation from the monthly jobs report and two inflation reports due before the Fed’s September. 17-18 meeting that the economic trends are continuing.

“I don’t want us to be in a situation where we cut, and then we have to raise rates again: that would be a very bad outcome” because it would undermine people’s confidence in the Fed, he said at an event organized by the Stanford Club of Georgia and the Stanford Black Alumni Association–Atlanta.

“If I’m going to err on one side, it’s going to be waiting longer just to make sure that we don’t have that up and down.”

The Fed has kept its policy rate in the 5.25 per cent-5.50 per cent range for more than year to bring down high inflation. Last week Fed chairman Jerome Powell said “the time has come” to reduce borrowing costs, given that price pressures have eased considerably and the labor market has cooled.

For much of this year, Bostic had said he expected the Fed would need to cut rates just once this year, likely in the fourth quarter. In recent weeks he has signaled his openness to starting earlier.