Atlanta Federal Reserve President Raphael Bostic indicated in an interview with FOX Business’ Liz Claman that the likelihood of an interest rate cut in July is low, citing signs of slowed inflation progress.

Bostic stated that he is closely monitoring the short-term trajectory of economic indicators and does not foresee a rate cut in July.

He emphasized the importance of economic strength and inflation moving closer to the Fed’s target of 2% before supporting any rate reductions, though he acknowledged that this is not his current outlook.

However, Bostic, a voting member of the Federal Open Market Committee, expressed reluctance to wait until inflation reaches 2% before considering loosening monetary policy, as it could lead to overshooting inflation.

He expects inflation to decrease gradually over the year and reach around 2% by 2025 or later, Fox Business reported.

Despite discussions about potential rate cuts later in the year, officials maintained interest rates at their highest level since 2001 during the May meeting, highlighting the need for increased confidence in inflation decline before policy easing.

Written by B.C. Begley