Atlanta Federal Reserve Bank President Raphael Bostic expressed openness to an interest rate hike if inflation does not reach the US central bank's 2% goal.
Bostic expects inflation to continue moving towards the Fed's target but would consider increasing rates if it stalls or moves in opposite direction.
Bostic expressed concern about US government debts, which are on course to hit a record with little sign of either main Presidential election candidate addressing the issue.
Bostic remains committed to maintaining a restrictive level of interest rates and only expects one rate reduction this year.
Bostic's stance on interest rates contrasts with some other Federal Reserve officials who have signaled a more aggressive approach to rate cuts.
Despite concerns about inflation and government debts, Bostic believes US economy is creating lots of jobs and performing well. He expects US economy to be strong and much stronger than previously anticipated.
Atlanta Federal Reserve Bank President Raphael Bostic expressed his openness to an interest rate hike if inflation does not reach the US central bank's 2% goal. In separate interviews with Reuters and the BBC, Bostic stated that he expects inflation to continue moving towards the Fed's target but would consider increasing rates if it stalls or moves in the opposite direction. The Atlanta Federal Reserve President also expressed concern about US government debts, which are on course to hit a record with little sign of either main Presidential election candidate addressing the issue.
Bostic's comments come as expectations for US interest rate cuts have sent reverberations around the world economy in recent weeks. The Chancellor Jeremy Hunt told reporters at the International Monetary Fund (IMF) Spring Meeting that what happens in the US has a knock-on impact on UK government borrowing costs. Those changes in the market for government debt can feed through to higher mortgage and business borrowing costs.
Despite concerns about inflation and government debts, Bostic believes that the US economy is creating lots of jobs and performing well. He expects the US economy to be strong, resilient, and much stronger than he had previously anticipated. The strength in the US economy is keeping inflation higher than expected.
Bostic's stance on interest rates contrasts with some other Federal Reserve officials who have signaled a more aggressive approach to rate cuts. However, he remains committed to maintaining a restrictive level of interest rates and only expects one rate reduction this year.
Federal Reserve Bank of Atlanta President Raphael Bostic believes it is not appropriate to lower interest rates until toward the end of the year.
Raphael Bostic anticipates just one rate reduction this year.
Accuracy
]The Fed projects one rate cut late in 2024 instead of two previously expected due to slower progress towards the 2% inflation goal.[
Atlanta Federal Reserve Bank President Raphael Bostic expressed openness to an interest-rate hike if inflation does not reach the US central bank’s 2% goal.
Atlanta Federal Reserve Bank President Raphael Bostic expressed openness to an interest-rate hike if inflation does not reach the US central bank’s 2% goal.
Bostic expects inflation to continue moving towards the Fed’s target, but if it stalls or moves in the opposite direction, he would consider increasing rates.
Accuracy
Federal Reserve Bank of Atlanta President Raphael Bostic believes it is not appropriate to lower interest rates until toward the end of the year.
Raphael Bostic expects just one rate reduction this year.
Raphael Bostic expects the US economy to be strong and resilient, which is keeping inflation higher than expected.
Raphael Bostic expressed concern about US government debts, which are on course to hit a record with little sign of either main Presidential election candidate addressing the issue.
Accuracy
US interest rates will be kept at a ‘restrictive level’ and might only ease ‘at the end of 2024’ (article)
Federal Reserve Bank of Atlanta President Raphael Bostic anticipates just one rate reduction this year (otherArticle)
Raphael Bostic expects the US economy to be strong and resilient, which is keeping inflation higher than expected (article)
Atlanta Federal Reserve Bank President Raphael Bostic expressed openness to an interest-rate hike if inflation does not reach the US central bank’s 2% goal (otherArticle)
