Atlanta Federal Reserve President Comments on Interest Rates

(Reuters) – Atlanta Federal Reserve President Raphael Bostic is open to an interest rate cut in September, he told the Financial Times in an interview published on Thursday, adding that the U.S. central bank can’t “afford to be late” to ease monetary policy.

“I’m open to something happening in terms of us moving before the fourth quarter,” Bostic told the newspaper.

Bostic’s comments are a step ahead of his previous remarks where he indicated he wanted to see “a little more data” before supporting a decrease in interest rates.

U.S. consumer prices rose moderately in July, and the annual inflation increase slowed to below 3% for the first time in nearly 3-1/2 years, which has opened the door wider for the Federal Reserve to cut rates next month.

Financial markets broadly expect the Fed to cut rates at its Sept. 17-18 meeting, marking its first move in this policy cycle.

Bostic also expressed caution regarding signs of cooling in the labor market, urging the central bank to remain conscious of its mandate to maintain full employment. Moreover, he stated he is open to cutting rates by increments of half a point instead of just a quarter point, should the labor market weaken more rapidly than anticipated.