In a speech last Friday, Atlanta Fed President Bostic made it clear that whether to cut rates in December is not a predetermined conclusion and will still depend on upcoming economic data. At the Dallas Fed's monetary policy conference, Bostic pointed out that although the market widely expects the Fed to make a rate cut decision by the end of the year, he emphasized that each decision will be based on real-time data and not follow a pre-set path. He further added, "We will not rely on any predetermined path, nor will we deviate from data-driven decision-making principles."

Bostic's remarks contrast with market expectations. Although the market generally believes the Fed will cut rates in December, Fed Chair Powell explicitly stated in recent policy meetings that a December rate cut is not a foregone conclusion. Bostic also mentioned this in his speech, describing Powell's stance as "wise" and emphasizing that policy decisions will strictly rely on data, without overinterpreting future monetary policy moves.

Bostic specifically noted that although the Fed's dot plot reflects diverse views and expectations, he warned investors against overinterpreting the future path of rate cuts. He explained that the dot plot only represents committee members' views on future policy and does not necessarily reflect the Fed's final actions. "We will rely on specific data to make appropriate decisions," Bostic added.

Bostic's speech once again highlights the Fed's current stance, which emphasizes flexibility and adjusting monetary policy based on economic data. The current U.S. economic situation is complex. While some economic indicators show a slowdown in growth, inflation remains above the Fed's target level. Therefore, whether to cut rates in December will still depend on the overall performance of the economy and data in the coming months.

Overall, Bostic's remarks indicate that although the market has high expectations for a December rate cut, the Fed will continue to rely on data to assess whether to proceed. As the year-end approaches, speeches by Fed officials and economic data will become the focus of market attention. Investors will closely monitor economic trends in the coming weeks to gauge the Fed's final decision.