Select Language

Fed's Bostic: Little reason to cut rates further for now - WSJ

Breaking news

Fed's Bostic: Little reason to cut rates further for now - WSJ

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.09.22 22:18
Fed's Bostic: Little reason to cut rates further for now - WSJ

update 2025.09.22 22:18

Atlanta Federal Reserve (Fed) President Raphael Bostic told the Wall Street Journal on Monday that he sees little reason to cut rates further for now, per Reuters.

Key takeaways

"Penciled in only one rate cut for all of 2025 at Federal Reserve's meeting last week."

"I am concerned about the inflation that has been too high for a long time."

"Te current moment is one of the most difficult periods for policymakers because both risks are rising."

"I don't project inflation returning to the Fed's 2% goal until 2028."

Market reaction

These comments received a hawkish score of 7.2 from FXStreet Fed Speech Tracker. Nevertheless, FXStreet Fed Sentiment Index remains in the dovish territory, well below 100.

Meanwhile, the US Dollar Index stays under modest bearish pressure and was last seen losing 0.22% on the day at 97.42.

Fed FAQs

Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed's 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.

The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials - the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.

In extreme situations, the Federal Reserve may resort to a policy named Quantitative Easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used during crises or when inflation is extremely low. It was the Fed's weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.

Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.


Date

Created

 : 2025.09.22

Update

Last updated

 : 2025.09.22

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

NZD/USD dives to fresh lows below 0.5840 as the US Dollar appreciates

The New Zealand Dollar is accelerating its downtrend against a firmer US Dollar, weighed by moderate risk aversion.
New
update2025.09.24 20:36

USD/CAD Price Forecast: Approaches monthly high of 1.3890 as US Dollar outperforms

The USD/CAD pair trades 0.3% higher to near 1.3875 during the European trading session on Wednesday.
New
update2025.09.24 20:33

Gold Price Forecast: XAU/USD pulls back to $3,760 amid US Dollar strength

Gold is trading with moderate losses on Wednesday, snapping a three-day winning streak amid a somewhat firmer US Dollar.
New
update2025.09.24 19:49

USD/CHF nears 0.7950 amid broad-based US Dollar's strength

The US Dollar accelerated its recovery against the Swiss Franc on Wednesday, reaching session lows above 0.7940.
New
update2025.09.24 18:51

USD/JPY jumps to near 148.30 as Fed Powell's caution on rate cuts boosts US Dollar

The USD/JPY pair trades 0.45% higher to near 148.30 during the European trading session on Wednesday.
New
update2025.09.24 18:33

Silver price today: Silver rises, according to FXStreet data

Silver prices (XAG/USD) rose on Wednesday, according to FXStreet data.
New
update2025.09.24 18:30

EUR/GBP eases to 0.8730 lows as German busines sentiment worsens

The Euro is trading lower across the board following an unexpected decline in the German IFO Business Climate Index on Wednesday.
New
update2025.09.24 18:01

EUR/JPY moves sideways around 174.50 following disappointing German IFO data

EUR/JPY maintains its position near the 14-month high of 174.65 during the European hours on Wednesday. The currency cross moves sideways after the release of the disappointing headline German IFO Business Climate Index, which unexpectedly fell to 87.7 in September from 89.0 in August.
New
update2025.09.24 17:54

AUD/USD jumps to near 0.6630 even as US Dollar trades firmly

The AUD/USD pair climbs to near 0.6630 during the European trading session on Wednesday. The Aussie pair strengthens, even as the US Dollar (USD) trades firmly, following comments from Federal Reserve (Fed) Chair Jerome Powell on Tuesday in which he reiterated caution on further interest rate cuts.
New
update2025.09.24 17:46

Pound Sterling weakens amid disappointing UK economic data

The Pound Sterling (GBP) declines to near 1.3485 against the US Dollar (USD) during the European trading session on Wednesday.
New
update2025.09.24 17:14

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel