Fed’s Bostic Open to Rate Hikes, Logan Warns Financial System Vulnerable to Bond Stress

Raphael Bostic (president of the Federal Reserve Bank of Atlanta) is willing to continue raising interest rates in the coming months if there are stronger economic indicators than predicted.

Bostic talked to reporters Thursday and acknowledged that he would update his policy path if consumers spend is strong and the labor market remains tight. He noted that this would mean the U.S. central banks would have to use additional tightening tools.

“There is the case that could be made that we need to go higher,” He spoke during a roundtable discussion with journalists.

Although he didn’t commit to a particular policy rate before the Federal Open Market Committee (FOMC), he indicated that he supported quarter-point rate rises.

“Right now, I’m still very firmly in the quarter-point move camp,” Bostic was mentioned.

However, the Fed will raise the benchmark Fed funds rates to an restrictive stance. Officials should leave them at that level. Bostic believes that there could be a pause in the summer.

It will happen soon after Bostic penned an essay Tuesday’s advocacy for raising the policy interest rate 50 basis points, to a range between 5 and 5.25 percent. “well into 2024.”

Other people agree with the statement that there is more to do to get inflation back to 2 percent.

“I think it will take time to return to target, and, as a consequence, believe we still have work to do,” Thomas Barkin, President of Richmond Fed Bank in an interview. speech The Stanford Institute for Economic Policy Research will host the annual economic summit this Friday.

“The Fed’s objective isn’t to hurt the economy, it’s to reduce inflation. And if there is one thing we’ve relearned over the last two years, it is that everybody hates inflation.”

Barkin remains confident inflation will reach the target of 2 percent, although he admits that he’s not 100% certain. “doubtful the process will be quick.”

Stress-vulnerable

Fed Bank President Lorie Logie Logan says that stress on the U.S. government bond markets can make it vulnerable.

Logan delivered An event host gives a speech