Bostic Sees Job Market Cooling, Predicts 2025 Rate Cuts
Investors received a mild dovish signal on Thursday as Atlanta Federal Reserve President Raphael Bostic highlighted growing signs of a slowdown in the U.S. labor market.
“I still see employment conditions as stable, but more evidence of a slowdown is emerging,” Bostic wrote in an essay. He noted that job seekers are facing greater difficulty finding positions compared to a few months ago, with hiring probabilities now lower than pre-pandemic levels. “As a result, the average unemployment duration has increased by about three weeks since August,” he added.
Bostic also expects inflation to ease further, citing declining rent growth trends observed on platforms like Zillow and Redfin, which he anticipates will eventually be reflected in official inflation data.
Calling the Fed’s current stance “moderately restrictive,” Bostic reaffirmed his outlook for two interest rate cuts in 2025.
His comments prompted a slight dip in U.S. Treasury yields and the dollar, while Bitcoin (BTC) edged up 0.5% to $97,600.
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