Atlanta Fed President Raphael Bostic warned that if China’s coronavirus becomes a “world issue, with ripples through many countries and many economies, then that’s different type of event than as I understand it to be today”. But for now, given our past recent experience with these sorts of things, I don’t think it should; it hasn’t changed my outlook or my expectation about our rates path.”
On monetary policy, Bostic said Fed’s three rate cuts last year are “working their way through the economy”. Policymakers “just have to wait and see”. There was “a lot of stimulus” for where the economy was. That should “make it more resilient to these sorts of things.”
