With inflation slipping in recent months and not hitting the Federal Reserve’s 2% target in years, Federal Reserve Bank of Atlanta President Raphael Bostic urged a “wait and see” approach on rate hikes in a televised interview Wednesday.

"Let's wait and see, and make sure we understand" where inflation is, Bostic said in an interview on CNBC.

"If we don't see that kind of inflation, my view is that we should try to be somewhat more hesitant in moving stridently in any direction," he said, noting "I actually am worried about the inflation numbers."

As the labor market continues to hum along, and “confidence is at a good level,” consumers are starting to spend, but it hasn’t created “a sustained level of inflation that all of our economic models say should exist."

He noted there’s no model that explains why inflation isn’t “performing the way it should be.”

Federal Reserve Bank of Atlanta President Raphael Bostic.
Federal Reserve Bank of Atlanta President Raphael Bostic.

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Gary Siegel

Gary Siegel

Gary Siegel has been at The Bond Buyer since 1989, currently covering economic indicators and the Federal Reserve system.