Economic growth may be 1% or 0.5% this year.Expect slower growth but recession isn’t in my outlook.May have to push against inflation pressures from tariffs.US-China de-escalation changes my outlook ‘a little’.
Bostic has been a hawk for quite some time and he’s not a voter this year. Nonetheless, this might be the next thing the market will need to price in, that is inflation risk and therefore scale back further the rate cut bets.
“May have to push against inflation pressures from tariffs” – is he suggesting a rate hike here?
This article was written by Giuseppe Dellamotta at www.forexlive.com.