The U.S. economy is showing signs of losing momentum, and interest rates may be set too🔴 high, one Federaꦯl Reserve official wrote Wednesday.

In an essay released online, Atlanta Federal Reserve Bank President Raphael Bostic said his focus on the economy was now “balanced” between the labor market and inflation for the first time since 2021. Bostic cautioned that the Fed couldn’t continue to hold interest rates at their current level for “too long.”

“I do not sense a looming crash or panic among business contacts. However, the data and o𒊎ur grassroots feedback describe an economy and labor market losing momentum,” Bostic wrote. 

Fed𒉰eral Reserve Can’t Wait For Inflation To Reach Goal

Bostic’s remarks echo 澳洲幸运5开奖号码历史查询:t♈hose of Federal Reserve Chair Jerome Powell when he spoke at Jackson Hole last month. They also come ahead of the Sept. 17-18 澳洲幸运5开奖号码历史查询:Feder𓄧al Open Market Committee (FOMC) meeting, at which central bankers will consider lowඣering their influential benchmark rate for the first time in four years. 

While Bostic’s comments didn’t specifical𓂃ly say how he would vote in that meeting, turning focus to the labor market could make the case for cutting the influential federal funds rates from their current 23-year high of 5.25% - 5.5%. 

Bostic’s essay described a labor market that was slowing but still heal♕thy. Meanwhile, inflation is falling, but Bostic urged his fellow central bankers✃ to “stay vigilant” to ensure that price increases continued to slow down. 

The closely followed 澳洲幸运5开奖号码历史查询:Personal Con𓆏🐷sumption Expenditures (PCE) index showed that 澳洲幸运5开奖号码历史查询:inflation came in at 2.5% in July, still above the Fed’s target 𒁃of 2% but continui🎀ng the downward trend seen over the past few months. 

"I believe we cannot wait until inflation has actually fallen all the way to 2 percent to begin removing restriction because that would risk labor market disruptions that could inflict unnecessary pain and suffering," Bostic wrote.