According to an interview with Reuters, Atlanta Federal Reserve President Raphael Bostic suggested that the Fed is probably still planning to reduce interest rates this year, despite uncertainty regarding when and by how much policy easing will occur, as well as the gradual pace of inflation declines.

Key Quotes

Most firms say pricing power is at or near its limit, with wage growth moving to pre-pandemic levels.

Optimistic disinflation will continue, though the path back to the Fed's 2% target may take until late next year or early 2026.

He is thinking less about the extent of rate cuts this year and more about getting the timing right for the start of easing.

Job growth needs to slow to be consistent with the 2% target, though that does not mean unemployment will spike.

Gain of 175,000 jobs in april may be low for pandemic-era, but still above what economy needs to account for population, labor force growth