Fed's Bostic: Economic Outlook Positive, But Caution Needed

Federal Reserve's Raphael Bostic emphasized on Monday that the bank is not set on a predetermined outcome for its December meeting. He stressed that the current policy rate remains restrictive and urged against assuming cuts will occur at every meeting. "Though my baseline outlook is positive, we cannot afford to be sanguine," he noted in his statement about the economic outlook, and risks for 2025.

He also mentioned that incoming data will be crucial in shaping decisions about the economic outlook and risks for 2025. Bostic acknowledged that if the Fed errs, it will likely do so by being more restrictive.

He further acknowledged the influence of a potential change of administration and its policies on future decisions. "Despite the conclusion of a tense presidential election, geopolitical uncertainties linger at home and abroad, and could generate renewed inflationary pressures" he said.