“There’s still work to be done, and I’m ready for it,” Raphael Bostic said Tuesday CNBCin an interview with As he put it, after that, interest rates must be kept at the same level for a long time, until the inflation trajectory turns downwards.
Bostic said that in his base case scenario, the US economy avoids recession.
His preference is in line with the median of the Fed’s policymakers, who predicted another quarter-point rate hike this year. The markets are thus pricing in a final interest rate hike in preparation for the May 2-3 meeting.
Bostic does not have a vote on monetary policy this year, although all Fed policymakers participate in interest rate discussions.
Although last week’s inflation reports showed some signs of easing price pressures, most Fed officials who have spoken since then have emphasized that more needs to be done to get price growth back to the 2 percent target.
Officials forecast interest rates will reach 5.1 percent this year, an increase of 25 basis points from the Fed’s current guideline target range of 4.75 to 5 percent.
Cover photo: Atlanta Fed President Raphael Bostic. Source: Christopher Dilts/Bloomberg via Getty Images.