The future “steady state” for US interest rates is likely to be higher than in recent times, possibly even reaching levels comparable to those seen in the 1990s, Atlanta Fed President Bostic said during the interview with Bloomberg. He also reiterated that “nothing has changed” concerning his belief that only one interest rate reduction will be warranted in 2024, amidst an ongoing though uneven slowdown in inflation. His remarks were later echoed by Federal Reserve Vice Chair for Supervision Michael Barr, who stated that the Fed should maintain steady interest rates, noting that the “disappointing” CPI data from the first quarter did not give him confidence to support reducing borrowing costs.
