Fed’s Bostic: I supported a 50 bps cut as a compromise

• I supported a 50 bps cut as a compromise between remaining uncertainty around inflation and risks to the labour market.
• Recent data show convincingly that the US economy is on a sustainable path to price stability.
• A half-point cut at this meeting does not lock in a cadence for future rate cuts.
• Risks to the labour market have increased, with the possibility of broad weakness higher than a year ago.
• Price increases have narrowed and become concentrated in housing.
• The economy is effectively near conditions that would be considered normal.
• Businesses are becoming more careful in hiring but not considering layoffs.

This article was written by Giuseppe Dellamotta at www.forexlive.com.