ATLANTA (Reuters) – The U.S. Federal Reserve is “in a good position” on both its unemployment and inflation objectives, with no clear sign the outlook for prices is eroding, Atlanta Federal Reserve Bank President Raphael Bostic said on Thursday, facts that would argue against reducing interest rates.
Bostic said his preferred measures of inflation “suggest it is close to target and not materially trending away from it. What’s more, my preferred data on inflation expectations do not indicate that these expectations are diverging from target either,” Bostic said at an economics conference at the Atlanta Fed. “Combined with 10 straight years of growth and a labor market that added more than 200,000 jobs last month, this suggests that the snapshot of the economy is a ‘keeper.'”
Bostic - Vote - Fed - Rate - Policy
Bostic does not currently have a vote on Fed rate policy, but will participate in the debate when the Fed meets in three weeks in a session widely expected to reduce the Fed’s overnight target interest rate by at least a quarter of a percentage point.
Fed Chairman Jerome Powell, in appearances on Capitol Hill this week, bolstered expectations such a cut is coming, and focused on the need to protect the...
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