More from Atlanta Fed Pres. Raphael Bostic:
- 25 or 50 basis points is on the table in September if inflation is too high
- Reiterates that he is comfortable with 50 basis point hikes at the next couple of meetings and is open to moving more aggressively of inflation is higher
- However it may make sense to pause in September depending on the economy
- By the end of the year aims for a 2% – 2.5% federal funds rate
- Analysts have a wide range of views about the path of the economy, providing one source of volatility
- There is a lot of momentum in the economy with growth above trend in the high 2s this year, even with expected rate hikes
- Expectd inflation in the high 3's this year
- Seeing some reaction to policy already in the real economy; it needs to be broader
- It is possible more of the impact of monetary policy could come through well the facts and equities this time
- Challenge for the Fed now is to determine when supply and demand are reaching equilibrium and not overdo rate hikes
