News

Fed’s Bostic: If the policy were voted on today, it would be voted firm

Fed's Bostic: If the policy were voted on today, it would be voted firm

ADVERTISEMENT

Raphael Bostic, president of the Federal Reserve Bank of Atlanta, said Monday that if he voted on monetary policy today, he would vote to keep interest rates stable, but added that there is still a lot of data to come before the meeting of the Fed in June.

Bostic told Bloomberg TV he feels companies have less pricing power than before, and hiring is easier, both signs that the Fed’s rate hikes are working.

But he wouldn’t consider rate cuts unless inflation, now 4.2% by the Fed’s preferred measure, falls further than the mid-to-high Level 3, where he expects it to be by the end of the year.

“Right now, if you had to tip the scales if the next move was going to be an increase or a decrease, that weighs pretty heavily for me right now.”

(Reporting by Ann Saphir; editing by Chris Reese)

ADVERTISEMENT