Fed’s Bostic: We are in a phase where there is some risk of overtightening

• Baseline is no rate cuts until the second half of 2024 at earliest
• Inflation is unacceptably high but there has been significant progress
• Data consistent with ‘orderly slowdown’
• We are in a phase where there is some risk of overtightening
• says he would have ‘grudgingly’ voted for a rate hike in July
• If progress on inflation stalls, I would be comfortable contemplating a rate hike

Bostic is a voter next year. The dovish tone isn’t new.