Economy

Bostick says anti-inflation ‘still in early days’

Bostick says anti-inflation ‘still in early days’

By Howard Schneider

WASHINGTON (Reuters) – Atlanta Federal Reserve President Rafael Bostic said on Wednesday the US Federal Reserve’s fight against inflation is likely to be “still in the early days,” becoming the latest US central bank governor to warn of a possible rate cut. In response to any weakness in interest rates. Economy.

Despite the “glimmer of hope” in recent data, Bostik said “the overall message I’m drawing … is that we are definitely still in the inflationary timber, not out of it,” with the Fed’s target funds rate needing to rise to about 4.5% by the end of general.

In prepared notes for Northwestern University’s (NASDAQ:) Institute for Policy Research, Bostik said he would like to cap rates at that point long enough to assess which direction the economy is headed.

But that does not mean that interest rate cuts will follow. The Fed’s sole focus is that inflation is crucially back to the central bank’s 2% target.

Bostick said there is “already high speculation that the Fed may start cutting interest rates in 2023 if economic activity slows and inflation begins to decline.” “I would say: Not so fast.”

“We should not let the emergence of (economic) weakness deter our efforts to bring down inflation,” Bostick said. “We must remain vigilant because this inflation fight is likely to be in the early days.”

The Federal Reserve meets again on November 1 and 2 with policymakers who expect to agree to raise interest rates by another three-quarters of a point even in the face of global market volatility.

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