Fed's Bostic from his monthly podcast "Economy Matters" says:
- Inflation is expected to gradually decline and approach the 2% target, but progress may be uneven.
- Inflation trends might show periods of stalling or more aggressive movement, reflecting variability in the data.
- A cautious policy stance will be necessary to avoid overreacting to short-term fluctuations.
- Ensuring policy aligns with reliable signals, even amid variability, is a key focus.
- Preference to err on maintaining higher rates longer to ensure inflation reaches the 2% target.
- Policy rate reductions may be slower or delayed to ensure consistent progress toward inflation goals.
- Rates will likely remain elevated longer than originally anticipated to achieve the inflation target.
Comments are consistent with others from the Atlanta Fed President.
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