9.3 C
New York
Monday, December 6, 2021

Fed’s Bostic sees gradual rate hikes to balance growth, inflation

Fed's Bostic sees gradual rate hikes to balance growth, inflation© Reuters. President of the Federal Reserve Bank of Atlanta, Bostic, seen in this handout photo

MONTGOMERY, Ala. (Reuters) – The Federal Reserve should aim to raise interest rates gradually despite weak inflation readings in part because any spike in demand could push the U.S. economy beyond its sustainable levels, one of the newest Fed policymakers said on Tuesday.

Atlanta Fed President Raphael Bostic, who began the job mid-year, said overall economic activity has grown at “a reasonably solid pace” in recent months despite hurricanes that have hit his district.

“I think it will be appropriate for interest rates to rise gradually over the next couple of years,” Bostic, who votes on policy next year, said at an economic forum in Montgomery, Alabama.

Noting that inflation has “softened” this year, he said: “While I’m still holding to the view that the recent weakness largely reflects idiosyncratic noise, I’ll be watching the next few inflation reports closely for signs of a pickup.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles


Please enter your comment!
Please enter your name here

Stay Connected

- Advertisement -

Latest Articles

Popular Articles