© Reuters. President and chief executive officer of the Federal Reserve Bank of Atlanta, Raphael Bostic speaks at the South African Reserve Bank’s Biennial Conference in the Cape Town International Convention Centre, South Africa, August 31, 2023. REUTERS/Esa Alexan
By Michael S. Derby
NEW YORK (Reuters) – Federal Reserve Bank of Atlanta President Raphael Bostic said on Wednesday he expects U.S. growth to slow and inflation to continue to ease on the back of tight monetary policy.
“The research, data, survey results, and input from business contacts tell me that tighter monetary policy and tighter financial conditions more broadly are biting harder into economic activity,” Bostic wrote in an essay published by his bank. “At the same time, I don’t think we’ve seen the full effects of restrictive policy, another reason I think we’ll see further cooling of economic activity and inflation.”
Bostic said comments from local business contacts “points to ongoing disinflation and a measured slowing in economic activity.” He added there’s additional “good news” in that as the economy slows, it is not doing so so rapidly that it signals a recession.