More from Fed's Bostic: Fed is going to be more comfortable with a bit more volatility in inflation

More from Feds Bostic

• Fed is going to be more comfortable with a bit more volatility in inflation
• He still has a lower for longer approach in his head
• He is not seeing signs at current inflation is doing the kind of harm to the economy that would call Fed's policy stance into question
• It is important for the public to understand Fed officials are not in lockstep and have different views
• Markets are functioning fine now. He is not expecting an adverse impact from tapering, nor does he see a taper adversely affecting the speed of the economy
• The more important factor will be the trajectory of the virus and the countries pandemic response
• Speed of labor market recovery will be very much tied to labor force participation
• The pandemic is causing everyone to take a step back to evaluate what their attachment should be to the labor market
• His hope was that September would provide more clarity on the economy and labor market economic challenges are really on the supply-side not demand-side
• Credit quality of borrowers buying homes is higher than before and there is not the same concentration of high risk loans as in the last crisis
• There are challenges and affordability of housing for first-time buyers
• His hope is at home prices may return to a more normal trajectory as supply and demand imbalances even out
• Keeping rates lower for longer can help some workers get more engaged in labor market and see the benefits of the recovery