Market Analysis

Atlanta Federal Reserve President Raphael Bostic has indicated his openness to an interest rate cut in September, according to an interview with the Financial Times published on Thursday. Bostic emphasized that the U.S. central bank "can't afford to be late" in easing monetary policy.

"I'm open to the possibility of us making a move before the fourth quarter," Bostic stated in the interview.

These remarks build on his earlier comments this week, where he expressed the need to see "a little more data" before fully backing a rate cut.

In July, U.S. consumer prices saw moderate growth, and the annual inflation rate dropped below 3% for the first time in nearly 3.5 years. This development has increased the likelihood of the Federal Reserve reducing rates at its upcoming Sept. 17-18 meeting, marking the first cut in the current policy cycle.

Bostic also expressed concern about signs of a cooling labor market. He urged the central bank to remain mindful of its mandate to maintain full employment and mentioned that he is open to cutting rates by half a point, rather than the usual quarter-point increments, if the labor market weakens more rapidly than anticipated.

Paraphrasing text from "Reuters" all rights reserved by the original author.