Fed’s Bostic: Expect stress in the jobs market when inflation is falling toward target

“I expect to see stress in the jobs market when inflation is falling toward target,” said Federal Reserve (Fed) Bank of Atlanta President Raphael Bostic  late Wednesday in a media interview shared by Marketplace per Reuters.

Additional comments

FOMC will base its interest rate decisions on data.

Fed does not want to be locked into a pre-determined rate path.

Its problematic for the economy if the Fed doesn't achieve 2% inflation target.

Best case scenario is the Fed will not consider a rate cut well into 2024.

Market reaction

EUR/USD remains on the backfoot around 1.0747 following the news, down for the third consecutive day to around fresh two-month lows.

Also read: Fed's Waller: Need to maintain flexibility on best policy decision for June meeting