Two senior Federal Reserve officials threw cold water on investor hopes for interest-rate cuts anytime soon as they both expressed concern about stubborn inflation.
Raphael Bostic, president of the Federal Reserve Bank of Atlanta, highlighted the stickiness of inflation while saying that he does not anticipate any interest-rate cuts this year and, if anything, “we may have to go up.”
Austan Goolsbee, president of the Federal Reserve Bank of Chicago, largely echoed that sentiment, though he struck a more dovish tone, saying that much of the impact from the Fed’s series of rapid rate hikes is still in the pipeline. He said he’d need to see more data—in particular around tightening credit conditions—before committing to a bias on the future path of interest rates….