Fed’s Bostic Sees Job Market Cooling, Expects Rate Cuts in 2025

Investors received a mildly dovish signal Thursday from Atlanta Federal Reserve President Raphael Bostic, who noted growing signs of a slowdown in the U.S. labor market.

“While the employment landscape remains stable, indications of a slowdown are becoming more evident,” Bostic wrote in an essay. He highlighted that job seekers are facing longer periods of unemployment, with job-finding rates now below pre-pandemic levels. “As a result, the average duration of unemployment is about three weeks longer than it was last August,” he noted.

Bostic also pointed to a moderation in rental price growth—tracked by platforms like Zillow and Redfin—as a sign that inflation could continue to ease.

He described the Fed’s current policy as “moderately restrictive” and projected two rate cuts in 2025.

In response to his comments, the U.S. 10-year Treasury yield and the dollar edged lower, while Bitcoin (BTC) saw a 0.5% gain, rising to $97,600.