3.1 C
New York
Friday, December 2, 2022

Fed’s Bostic says inflation fight “still in early days”

Fed's Bostic says inflation fight
© Reuters. FILE PHOTO: President and Chief Executive Officer of the Federal Reserve Bank of Atlanta Raphael Bostic speaks at a European Financial Forum event in Dublin, Ireland February 13, 2019. REUTERS/Clodagh Kilcoyne

 

NWE
-2.40%

Add to/Remove from Watchlist

Add to Watchlist

Add Position

Position added successfully to:

Please name your holdings portfolio

Type:

BUY
SELL

Date:

 

Amount:

Price

Point Value:

Leverage:

1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000

Commission:

 

Create New Watchlist
Create

Create a new holdings portfolio
Add
Create

+ Add another position
Close

By Howard Schneider

WASHINGTON (Reuters) – The U.S. Federal Reserve’s fight against inflation is likely “still in early days,” Atlanta Fed president Raphael Bostic said Wednesday, becoming the latest U.S. central banker to caution against the likelihood rates would be reduced in response to any weakening of the economy.

Despite “glimmers of hope” in recent data, Bostic said “the overarching message I’m drawing…is that we are still decidedly in the inflationary woods, not out of them,” with the Fed’s target funds rate needing to rise to around 4.5% by the end of the year.

In prepared remarks to the Northwestern (NASDAQ:NWE) University Institute for Policy Research, Bostic said he would like to cap rates at that point long enough to assess where the economy is heading.

But that does not imply rate cuts would follow. The Fed’s singular focus is that inflation head decisively back to the central bank’s 2% target.

There is “considerable speculation already that the Fed could begin lowering rates in 2023 if economic activity slows and the rate of inflation starts to fall,” Bostic said. “I would say: not so fast.”

“We should not let the emergence of (economic) weakness deter our push to lower inflation,” Bostic said. “We must remain vigilant because this inflation battle is likely still in early days.”

The Fed meets again on Nov. 1-2 with policymakers expected to approve another three-quarter point rate hike even in the face of global market volatility.

Source: Investing.com

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

11,282FansLike
12,893FollowersFollow
744FollowersFollow
- Advertisement -

Latest Articles

Popular Articles