Investing - The U.S. Federal Reserve is likely to cut interest rates this year, according to Atlanta Federal Reserve President Raphael Bostic, even if the timing remains uncertain.
"There is an expectation for most of the employers I talk to that they will get back to pre-pandemic wage growth," Bostic said in the interview. And with the possible exception of tech companies, "we're hearing from pretty much everyone ... their pricing power is pretty much at its limit." "I don't think we're going to know that for at least a couple of months," he added. "I'm hopeful that we do continue to see this slowing down because my outlook really says that you're going to have to see some slowing down in order to get inflation back to our 2% target ... We still are seeing robust job growth."
The Atlanta Fed head said last month that he would be open to lifting interest rates if inflation remains at elevated levels, comments that resulted in a sharp rise in bond yields and a selloff on Wall Street.
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