Fed’s Bostic: Labor market cooling in an orderly fashion as inflation progress on track

In an essay, Atlanta Fed President Raphael Bostic expressed cautious optimism about the US economy, highlighting that the labor market is cooling in a “largely orderly fashion” despite higher interest rates. “This is welcome news,” Bostic noted, echoing perspectives from business contacts.

Besides, he noted that while there are still upside risks to price stability, the “totality of the data” suggests that progress toward 2% inflation target remains “on track”.

Bostic assessed the broader economy as being “on solid footing,” with the labor market stable near maximum employment and price stability within reach. However, he warned against complacency, noting that the monetary policy outlook is not predetermined.

“In making judgments about what this path should look like, my strategy will be to look to the incoming data,” he said, emphasizing a need for vigilance as policymakers address remaining challenges.

Full essay of Fed’s Bostic here.