Atlanta Federal Reserve President Raphael Bostic signaled Wednesday that he is prepared to start cutting interest rates even though inflation remains above the central bank’s target.
Bostic has previously been among the more hawkish policymakers, or advocates of tighter monetary policies to combat inflation, but he indicated that his focus is shifting toward the employment side as signs of weakening labor market strength grow.
“I believe we cannot wait until inflation is substantially below 2 percent to begin cutting rates, as that could lead to labor market disruptions that could cause unnecessary pain and suffering,” he said in a letter posted on the Atlanta Fed’s website.
