But Federal Reserve Bank of Atlanta president Raphael Bostic struck a cautious tone on the rate forecast, saying he still expects just one cut in 2025 even though markets also view an October reduction as likely.
Still, he said his outlook could change if the job market – which weakened in July – slips again. “For the rest of this year, I still have one cut on my outlook,” Bostic said during an event in Alabama.
“That also is predicated on the notion that labor markets stay solid. If they weaken considerably, that balance of risks starts to look differently and the appropriate path will look different as well.”
After lowering rates by a full basis point through three consecutive cuts between September and December last year, the Fed has held its funds rate steady in its last five announcements.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.