Atlanta Federal Reserve President Raphael Bostic said on Thursday that an interest rate cut in the fourth quarter was likely, with inflation moving in the right direction, per Reuters.

Key takeaways

"Penciled in four quarter-percentage-point rate cuts for 2025, Fed is on a long term arc."

"Want to be absolutely certain inflation will return to 2% before an initial cut that should be seen as the first in a series; that is a reason for patience."

"Inflation remains chief concern, businesses say they see no cliff' ahead for the job market."

"Fed can achieve 2% inflation with a job market that remains tight by historical standards."

"Service businesses say pricing power is eroding."

"Housing costs are a frontline conversation, though he remains confident shelter inflation will fall back into line."

"Labor market is loosening but it's not loose."

"GDP and job market data point to orderly deceleration in activity that will balance supply and demand, lower inflation."

Market reaction

These comments failed to trigger a noticeable reaction in the US Dollar (USD). At the time of press, the USD Index was down 0.26% on the day at 105.77.