Atlanta Fed President Raphael Bostic shared his insights on the current monetary policy landscape in an interview on Yahoo Finance. Bostic argued for a pause on tightening , suggesting that federal funds rate should remain stable at the current level of 5.00-5.25% for the rest of the year.
“My baseline is that we should stay at this level for the rest of the year,” he stated. He suggested that Fed’s tightening work should be allowed to ripple through the economy.
He asserted, “It takes time for monetary policy changes to meaningfully influence economic activity. We have good reasons to expect our policy tightening will be increasingly effective in coming months.”
