FED CHAIR REVISITS INTEREST RATE CUT IN SEPTEMBER

- Raphael Bostic (President of the Atlanta Fed) stated that he expects an interest rate move this year but emphasized flexibility due to the uncertain economic outlook. He noted that inflation remains above the 2% target and predicted that the Fed could reach a neutral interest rate by 2026.

- Jeffrey Schmid (President of the Kansas City Fed) expressed skepticism about the possibility of an interest rate cut in September, contrary to market expectations. He emphasized that clearer data is needed before making any changes and mentioned that policymakers will review the situation at the Jackson Hole meeting this week.