Fed’s Bostic: Wants to give economy more time to adjust to rate hike before doing more

  • Pressing ahead now with additional rate increases could ‘needlessly drain’ momentum from the economy
  • Policy hasn’t been restrictive long enough for effects to hit, so it’s prudent to wait
  • Risk of waiting is that inflation rebounds, but ‘that’s not my baseline’
  • Some further slowing of labor market may be necessary for inflation to return to 2%
  • Bank contagion hasn’t materialized

This is a strong dovish pushback from Bostic. Goolsbee earlier also sounded like he’s not inclined to support a July hike.

This article was written by Adam Button at www.forexlive.com. Source