Atlanta Fed president Raphael Bostic said yesterday, “I would like to reach a point where policy is moderately restrictive –between 4 and 4 1/2 percent by the end of this year — and then hold at that level and see how the economy and prices react,”
There is “considerable speculation already that the Fed could begin lowering rates in 2023 if economic activity slows and the rate of inflation starts to fall,” Bostic said. “I would say: not so fast.”
“We should not let the emergence of (economic) weakness deter our push to lower inflation,” he added. “We must remain vigilant because this inflation battle is likely still in early days.”
