Federal Reserve's Bostic: Expects to start cutting rates in Q4 this year, with a total cut of 100 basis points next year

ChainCatcher news, Federal Reserve's Bostic stated that the pricing power in the service sector is declining, but he still believes that housing inflation will return to normal. He thinks that the Federal Reserve can achieve the 2% inflation target while the labor market remains tight by historical standards. He wants to be absolutely certain that the inflation rate will return to 2% before the first rate cut, which should be seen as the first step in a series of rate cuts. Bostic expects a rate cut in the fourth quarter of this year and anticipates a total of 100 basis points in rate cuts next year, meaning there will be four quarterly cuts in 2025, each by 25 basis points.