More from Atlanta Fed Pres. Raphael Bostic:

  • 25 or 50 basis points is on the table in September if inflation is too high
  • Reiterates that he is comfortable with 50 basis point hikes at the next couple of meetings and is open to moving more aggressively of inflation is higher
  • However it may make sense to pause in September depending on the economy
  • By the end of the year aims for a 2% – 2.5% federal funds rate
  • Analysts have a wide range of views about the path of the economy, providing one source of volatility
  • There is a lot of momentum in the economy with growth above trend in the high 2s this year, even with expected rate hikes
  • Expectd inflation in the high 3's this year
  • Seeing some reaction to policy already in the real economy; it needs to be broader
  • It is possible more of the impact of monetary policy could come through well the facts and equities this time
  • Challenge for the Fed now is to determine when supply and demand are reaching equilibrium and not overdo rate hikes