Atlanta Fed President Raphael Bostic predicts prolonged period of higher interest rates

Atlanta Fed President Raphael Bostic believes that the Federal Reserve should keep interest rates at their current level well into 2024 to combat inflation. Despite the rate hikes, the economy has remained resilient due to pandemic-related support policies and higher savings balances. Bostic acknowledges that the rate hikes have not yet fully impacted the economy and advocates for a cautious approach. He believes that a recession is unlikely and that the Fed should maintain a restrictive posture to ensure inflation stays at the target of 2%.