Atlanta Fed Pres. Bostic: Last couple inflation numbers suggested going back to 2%

Fed Atlanta Fed Pres. Bostic is on the wires and say

  • The post-pandemic economy may be less sensitive to rates
  • Last couple of inflation numbers suggested going back to 2%, but going slowly
  • Households, homeowners want in low rates, limit sensitivity of economy to policy rate hike’s
  • We are not going to talk about moving the Feds inflation goal until we get to 2%.
  • Expect to start new discussion on Fed framework in 2025
  • On rates, it is important to move in one direction only
  • We may have to be a little more patient about inflation’s path to 2% before moving policy rate
  • Job growth has been robust
  • Jobs give me comfort at staying at more restrictive level
  • We are not in danger of falling into a more contractionary environment.
  • There is still considerable upward pressure on prices, not past the worry point
  • Each central bank has to think about its own jurisdictions
  • Europe is quite different from us
  • It would NOT be a surprise to me if it took longer to get to 2% in the US than elsewhere
  • Climate change has important implications for how economy plays out in Atlanta district
  • Climate change has real economic implications. I have to keep my eye on it.

This article was written by Greg Michalowski at Source