Atlanta Fed President Raphael Bostic in an interview with the Financial Times said:
- Every option is on the table for every meeting
- If the data say that things have evolved in a way that a 50 basis point move is required or [would[ be appropriate, then I am going to lean into that
- Comfortable with moving in successive meetings
- Sticks to 3 rate increases in 2022 with the first in March
- Will be looking for deceleration in monthly CPI price gains
- Looking for further evidence that rising wages are not feeding meaningfully into higher inflation
- Encouraged by latest employment cost index and expects a moderation in wage growth going forward
- Says markets are acting rationally and responding with tighter financial markets
- Supports reducing the $9T balance sheet as quickly as possible without impairing market functioning
- He is optimistic on the economy
- If we do three hikes, that'll still leave our policy in a very accomodative space
The market is are now pricing up to 5 fed funds increases in 2022
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