Atlanta Fed President Raphael Bostic said Fed should hike by 50bps to 5.00-5.25%, and hold it at that level until well into 2024. “We must determine when inflation is irrevocably moving lower,” he wrote in an essay. “We’re not there yet.”
“That’s why I think we need to raise the federal funds rate to between 5-5.25% and leave it there well into 2024. This will allow tighter policy to filter through the economy and ultimately bring aggregate supply and aggregate demand into better balance and thus lower inflation.”
“If we are going to get inflation back in the range of our target, the breadth of inflation will have to narrow considerably,” Bostic wrote. “When inflation is no longer top of mind, our mission will largely be accomplished. We are clearly not there yet. But I—and the Committee—are committed to doing all we can to ensure that we get there as soon as possible.”
