Fed’s Bostic says his ‘dot’ was for 25 bp more in cuts in 2024

(Reuters) – Atlanta Federal Reserve President Raphael Bostic on Tuesday said he penciled in just one more interest rate reduction of 25 basis points this year when he updated his projections for last month’s U.S. central bank meeting.

“The median was for … 50 basis points more, above and beyond the 50 basis points that was done in September. My dot was 25 basis points more,” Bostic said at an event in Atlanta.

Bostic said, however, that his projection is not fixed in stone, and he will adjust it as needed in response to incoming data on inflation and the job market.

“I am keeping my options open,” he said.

The Fed last month cut rates by 50 basis points in the first of what is expected to be a series of reductions over the next year to remove some of the policy restraint it imposed to lower inflation.