Atlanta Fed President Raphael Bostic said, “if the CPI comes in showing the same kind of trending that we saw in the jobs number, that will make me have to take 25 more seriously,” regarding the rate hike in February.
But he also emphasized that “we are just going to have to hold our resolve,” and expect interest rates to rise to 5.00-5.52% range to bring inflation down. As how long he saw rates above 5%, Bostic said: “Three words: a long time.”
“I am not a pivot guy. I think we should pause and hold there, and let the policy work,” he said. The “base case” for him it no rate cuts in 2024.