Fed's Bostic Urges Caution and Steady Rates to Avoid Unnecessary Pain

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Source: CNBC
Fed's Bostic Urges Caution and Steady Rates to Avoid Unnecessary Pain
Photo: CNBC
TL;DR

Atlanta Federal Reserve Bank President Raphael Bostic argues against further interest rate hikes, stating that current monetary policy is already tight enough to bring inflation back down to 2% over a reasonable period. While cautioning against easing policy, Bostic believes that the restrictive policy should continue to influence the economy to avoid unnecessary economic pain. He highlights that interest rate hikes have already helped lower inflation, and business surveys indicate fewer firms plan to raise prices. Bostic emphasizes the need for the Fed to stay resolute on keeping policy tight until it is clear that inflation is on track to reaching the Fed's 2% goal.

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