The Federal Reserve is close to meeting its dual mandate, and while he expects inflation to run higher than 2% for a while, it won’t cause the Fed to respond aggressively, Federal Reserve Bank of Atlanta President Raphael Bostic said Wednesday.
Federal Reserve Bank of Atlanta President Raphael Bostic said the central bank can accommodate an overshoot of its inflation target and he isn’t worried by the impact of oil prices rising past $70 a barrel.
Federal Reserve Bank of Atlanta President Raphael Bostic sees a buoyant U.S. economy lifting inflation to the central bank’s 2% target “sometime in the next quarter or two” but said he doesn’t think this should prompt the central bank to choke off the expansion.
Two regional Federal Reserve bank presidents said they favor raising interest rates twice more this year following a hike this week, but were open to shifting their views if the outlook warranted a different policy approach.
Writing off soft inflation, Federal Reserve Bank of Atlanta President and CEO Raphael Bostic believes gradual rate increases will remain appropriate for the “next couple of years,” but tax reform "could move the needle."