Fed's Bostic (non-voting) is speaking again:
- Believes that the effects of monetary policy adjustments that began last year are starting to show up in the real economy, including labor markets.
- Reiterates he doesn’t see additional Fed rate hikes as needed
- Fed policy in place to bring inflation back to 2% target
- Inflation is in a gradual cooling trend that should continue
- Expects Fed can meet inflation goal without causing severe downturn
- Not ready to rule out further rate hikes if needed
- Does not see Fed rate cuts in 2023 or 2024
- Inflation should cool even if Fed leaves current policy in place
- He points out that the labor market conditions are more like those before the pandemic - still tight but less so than over the past few years.
- Bostic reaffirms his commitment to reducing inflation, even if it results in a rise in unemployment.
- Monetary policy has only recently moved into restrictive territory
- He mentions that the last three years have been a lesson in the uncertainty and challenges faced by policymakers, but he assures that the FOMC will not waver in its fight to bring down inflation.
Bostic has shifted to more dovish of late. He does hedge a bit with his comment that he is not ruling out further hikes, but he is tilting toward letting the hikes of the past, work through the economy now.
For the full text of his speech, CLICK HERE.
