OIL: WTI Crude has fallen in a volatile trading session

RRP usage slips to $196.565B this afternoon from $200.850B last Friday. Compares to $58.770B (lowest level since mid-April 2021) on February 14. The number of counterparties at 43.

MNI interviews head of Canadian manufacturing group on tariff wars in podcast -- On MNI Policy MainWire now, for more details please contact sales@marketnews.com

Atlanta Fed Pres Bostic (non-2025 FOMC voter, leans hawk) says in a Bloomberg interview that he has reduced his 2025 rate cut expectations to 1 in March's economic projections versus 2 previously, "because I think we will see inflation be very bumpy", and delayed inflation progress warranted pushing back the path to neutral rates. This puts him among the 8 most hawkish FOMC members for 2025 (of 19 participants, 4 saw 1 cut, 4 saw none). We'd pointed out last week that Bostic may have taken a slightly more hawkish outlook after the Atlanta Fed's Business Inflation Expectations (BIE) survey for March showed a pickup in inflation expectations.

• His projection of inflation this year is "pretty much sideways", won't get back to 2% until 2027.
• Bostic: Undoubtedly hearing more concerns about the trajectory of the economy. The question we face now is, is consumer sentiment going to be a leading indicator like it was pre-pandemic, or will it not translate into actual behavior in the economy which is how it played out for most of the pandemic?
• He cites the Atlanta Fed BIE: looking at expected price changes, the amount of changes they expect almost match the cost of change one-to-one and we will see what happens in terms of whether customers take that on board.
• Bostic says that he's undoubtedly hearing more concerns about the trajectory of the economy. But we still see a reslient economy. The question we face now is, is consumer sentiment going to be a leading indicator like it was pre-pandemic, or will it not translate into actual behavior in the economy, which is how it played out for most of the pandemic?
• Bostic says "we have heard consistently" from businesses that pricing pressures will go higher rather than lower. At the same time, businesses are "quite bullish on sales rising as well" which suggests they believe consumers will be able to manage higher inflation - and their expected input prices match their expected charging prices almost one-to-one. Says we will see what happens in terms of whether customers take that on board.
• Says he tries not to use "that word" (transitory) about inflation: there is "a question" about whether tariffs will generate a one-off jump in inflation or otherwise. Depends on what tariffs we see and "interesting" to see how customers take them on board.
• Re the Atlanta Fed's GDPNow's negative Q1 forecast: it's a sign that the data that have come in suggests a slowdown, but most businesses I'm talking to are not reporting that kind of slowdown - we will have to wait to see what happens.
• On the QT taper decision: His preference is to "stay at this rate ($5B/Month) for a while until we decide to stop". He says that he would think about selling MBS.