In an essay published today, Atlanta Fed President Raphael Bostic emphasized Fed’s dual mandate of price stability and maximum employment.
While he has been “intensely focused” on controlling inflation for the past three years, “that’s changing” as eroding pricing power and a cooling labor market come into play.
“I’ve rebalanced my focus toward both sides of the dual mandate for the first time since early 2021,” he wrote.
Bostic emphasized that while inflation is not yet fully under control, saying “I am not quite prepared to declare victory over inflation,” Fed must also avoid keeping monetary policy too restrictive for too long.
He stressed the importance of not waiting until inflation reaches the 2% target to begin easing, as maintaining high interest rates for too long could cause “labor market disruptions that could inflict unnecessary pain and suffering.”
![Pinterest](https://pinterest.com/pin/create/button/?url=https://www.actionforex.com/live-comments/566455-feds-bostic-signals-shift-in-focus-as-inflation-eases-and-labor-market-cools/&media=https://www.actionforex.com/wp-content/uploads/featured-images/f-fed3.jpg&description=In an essay published today, Atlanta Fed President Raphael Bostic emphasized Fed's dual mandate of price stability and maximum employment. While he has been "intensely focused" on controlling inflation for the past three years, "that's changing" as eroding pricing power and a cooling labor market come into play.){kind=link}