Federal Reserve's Bostic has expressed willingness to consider an additional 50 basis point rate cut if the labor market shows unexpected weakness. He anticipates an "orderly" policy easing, expecting inflation to continue its downward trend while the labor market remains stable.
Bostic noted that with the core Personal Consumption Expenditures (PCE) index still at 2.7%, caution is needed when assessing inflation. The upcoming employment data will be closely monitored, and if job growth falls significantly below 100,000 positions, a deeper analysis of the situation will be necessary. Recent PCE data suggests that inflation is still on a declining trajectory.
