Fed's Bostic: The US will be “hard pressed” to get inflation below 3.0% for all of 2022

Joel Frank Independent Analyst

Atlanta Fed President and FOMC member Raphael Bostic said on Tuesday that the US will be "hard-pressed" to get inflation back below 3.0% for all of 2022, reported Reuters. However, Bostic said he remained optimistic that Fed actions will produce steady movement of inflation back to the bank's 2.0% target.

Separately, Bostic warned of significant upwards pressures on energy prices. The labour market is sending a strong signal that the US economy can stand on its own without central bank support, Bostic added. Bostic continued that he is not seeing a shift in long-run inflation expectations, or any evidence of a wage-price spiral in the economy.

Bostic said that he is open to four quarter-point rate hikes this year if inflation continues to surprise on the high side. However, "everything is on the table" if data points to a need for more frequent rate increases, or in larger increments than a quarter point.

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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