Atlanta Fed’s Bostic: Trade moves raising downside risk to U.S. economy

BIRMINGHAM, Ala. (Reuters) – Intensifiying trade tensions over the last week have boosted downside risk to the economy, Atlanta Federal Reserve bank president Raphael Bostic said on Tuesday, adding that he may rule out a fourth rate increase for the year if things get worse.

“The more it progresses in this more contentious way, the more it leads me to feel the risks are on the downside for the broader economy,” Bostic said in remarks at the Birmingham Civil Rights Institute. “If this progresses the way it has been the last couple of days there is some likelihood I will be moving away from four as a real possibility.”

The Fed has raised interest rates twice so far this year and its latest forecasts show policymakers expect to hike rates two more times in 2018.

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