Atlanta Fed President Raphael Bostic crossed wires during an interview with MarketWatch as he said that his suggestion that the central bank takes a September “pause” in its push to raise interest rates should not be construed in any way as a “Fed put,” or belief that the central bank would come to the rescue of markets.
Key quotes
The notion of any sort of “Fed put” was never a factor in his thinking.
I think it’s a good tale on some level for storybooks, but it’s not driving how I’m thinking about policy.
A pause might be a good idea because the market’s response to the Fed’s shift to raising rates “was far stronger than what we’ve historically seen.”
FX reaction
Following the news, S&P 500 Futures remain mildly bid and the EUR/USD pair consolidates recent losses around 1.0735.
