Atlanta Fed chief Bostic doesn't see a need for more rate hikes
U.S. Banks Asset Management Group CIO Eric Freedman joins ‘Mornings with Maria’ to discuss market activity, signs inflation is coming down and whether Americans can expect another rate hike in 2023.
Atlanta Federal Reserve Bank President Raphael Bostic said Tuesday that he thinks the Fed doesn’t need to raise interest rates further as it looks to quash inflation, suggesting the central bank’s actions to date may be enough to restore price stability.
Speaking at the annual convention of the American Bankers Association, Bostic acknowledged that there’s «certainly more for us to do» in getting inflation down to the Fed’s target rate of 2% from the 3.7% year-over-year inflation recorded in August. «I actually expect that there will be bumps along the way, but I actually think that we’re in a good place for policy to get us to 2%,» he said.
«In my outlook on the dot plot, I don’t have a recession in it,» Bostic explained. «I have the economy slowing down, but not moving into a recessionary mode because there’s a lot of momentum that was present and I think that is going to be able to sop up a lot of our slowdown.»
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Raphael Bostic, president of the Federal Reserve Bank of Atlanta, said at the American Bankers Association conference that he doesn't think the Fed will need to raise interest rates again. (Valerie Plesch/Bloomberg via Getty Images / Getty Images)
«I think that our policy rate is at a sufficiently restrictive position to get inflation down to 2%. We have clearly moved into a restrictive place, the economy is clearly slowing down, and a lot of our policy impact has yet to come,» he said.
Bostic pointed to a lot of refinancing of commercial and
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