Sat, Jun 10, 2023 @ 17:04 GMT
HomeLive CommentsFed Bostic: Recent data consistent with one more rate hike

Fed Bostic: Recent data consistent with one more rate hike

In a recent interview with Reuters, Atlanta Fed President Raphael Bostic discussed the implications of this week’s slowing consumer price increases and falling producer price inflation. According to Bostic, these developments are in line with the possibility of one more rate hike, as momentum suggests a trajectory towards 2% inflation.

Bostic expressed that the aggressive rate increases over the past year are just beginning to “bite” the economy, justifying a pause after one more rate increase. This pause would allow for an assessment of the economy and inflation’s progression while aiming to minimize the impact on growth and employment.

Despite the current economic landscape, Bostic remains optimistic, believing that unemployment won’t need to surpass 4% and that the economy can continue to grow, albeit at a slower pace. He attributes the persistent consumer demand and robust hiring to the economic distortions caused by the trillions of dollars in government support provided during the COVID-19 pandemic.

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