Atlanta Fed President Raphael Bostic projected a sense of confidence in the current monetary policies during his speech on Monday, suggesting the potential for patience as restrictive strategy seems to be yielding desired outcomes.
Bostic noted, “I have the view that we can be patient — our policy right now is clearly in the restrictive territory,” adding that the economy’s signs of slowing down indicate that the policy is achieving its intended effect.
The Atlanta Fed President pointed out that underlying data for prices “is actually telling a very positive story.” Bostic believes that momentum is building in the disinflationary trend, stating, “We have got that momentum going. You could see inflation getting back to 2% without having to do more.”
Despite his overall optimistic outlook, Bostic did note that he would be concerned if expectations for consumer-price increases became “unanchored.” This situation would necessitate further action from policymakers. However, he expressed confidence that “inflation is still moving steadily back to target” and that inflation expectations are centered around 2%.
Bostic summed up his stance by stating, “I am comfortable being patient.”
