Atlanta Fed President Raphael Bostic told Fox Business overnight that he does not expect further rate hikes to be necessary to bring inflation down to the target. However, he cautioned that if inflation were to reaccelerate, “I’d have to take on board the likelihood that a rate increase is appropriate.”
Bostic emphasized the need for economic data to show the economy is “sufficiently strong” and that inflation is moving closer to Fed’s 2% target before supporting any rate cuts, but he clarified, “That’s not my outlook today.” He anticipates that inflation will decrease “very slowly” over the year, reaching 2% target by 2025 or later.
