Fed’s Bostic still sees a single rate cut this year, amid uncertainty

By Reuters

NEW YORK: Federal Reserve Bank of Atlanta President Raphael Bostic said on Thursday that he still thinks the U.S. central bank can cut its interest rate target once this year, while noting there’s a lot of uncertainty around that view as the economy undergoes considerable change.

Bostic said the forecast he offered earlier in the year of one rate cut was “kind of still where I am,” speaking before theMetro Atlanta Chamber. But he added “but I would just say, in today’s world, every point estimate or forecast has a wide confidence band around it, and so I’m not stuck on anything.”

Bostic said the current federal funds rate target range, now set at between 4.25% and 4.5%, is “marginally restrictive” amid an ongoing debate about whether that rate needs to be cut. Bostic said overall growth this year is likely to be “relatively tepid” before rebounding next year amid more clarity in the business world about the general state of U.S. economic policy. If that happens, “we would be in a position, we being the F

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