Fed's Bostic
Atlanta Fed Pres. Bostic:
- Still a ways to go on inflation even though Fed has made "tremendous" progress
- Pandemic policies left families and businesses in much stronger position able to absorb restrictive policy
- Expect inflation to continue to come down slowly and unevenly
- Expect tight labor markets to continue moving forward.
- Paying a lot of attention to 3 and 6-month inflation figures, they are coming down
- Wages have been a trailing indicator and a way to retain workers
- Have to keep an eye out to ensure output does not become too weak
- Businesses and employers still see the economy as strong, with robust demand
- Fed is in a good play with a pathway to fixing inflation without much labor market pain
- Businesses increasingly say they do not have the same price power as early in the pandemic
- Fed is not going to jump at the first data point
- Policy will need to be resolute
