Atlanta President Fed Raphael Bostic said yesterday, “the lack of progress thus far has me thinking much more now that we have to get to a moderately restrictive stance. And for me, that is in the 4.25% to 4.5% range for our policy. My preference is that we get there by year end.”
Bostic said that his expects another 75bps rate hike in November, followed by 50bps in December. But he added that “I don’t think it’ll be appropriate for us to continue to tighten and increase your rates until inflation gets to 2%. That will be guaranteeing that we’ve gone too far and we’ll take the economy into a negative space.”
“I’m still in the place of not really thinking that a recession is a foregone conclusion as we battle this,” he said. “So we can have some weakening, but I don’t think it, at this point, will take us to the historical recessionary experience.”
