Atlanta Fed’s Bostic Hints at Slowing Job Market, Signals Potential Rate Cuts
Investors, who had largely abandoned hopes for Federal Reserve rate cuts in 2025, received a slight dovish surprise on Thursday from Atlanta Fed President Raphael Bostic.
In an essay, Bostic highlighted emerging signs of a cooling job market. “While I see employment as stable, indicators of a slowdown are becoming more evident,” he noted. He pointed out that job seekers are finding it increasingly difficult to secure employment compared to a few months ago, with job placement probabilities now lower than pre-pandemic levels. “As a result,” Bostic explained, “the average duration of unemployment is now about three weeks longer than it was in August.”
Bostic also expects inflation to ease further, citing a slowdown in rent growth as reported by platforms like Zillow and Redfin, which should soon be reflected in official government price data.
Describing the current monetary policy stance as “moderately restrictive,” Bostic projected two interest rate cuts for 2025.
Following his remarks, the U.S. 10-year Treasury yield and the dollar dipped slightly, while Bitcoin (BTC) gained 0.5%, rising to $97,600.
