(Bloomberg) — Federal Reserve Bank of Atlanta President Raphael Bostic said the U.S. central bank does not need to raise interest rates further unless the decline in inflation stalls.
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“Today, I don’t think we need to do more on interest rates,” Bostic said in a speech to the Metro Atlanta Chamber on Wednesday.
If inflation stalls or moves in the other direction, that would be a clear sign that we need to do more, he said.
Fed officials at their last policy meeting in September left their key interest rate unchanged in a range of 5.25% to 5.5% – a 22-year high – and signaled they expect another increase this year. The central bank will release the minutes of the September 19-20 meeting on Wednesday at 2 p.m. in Washington.
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Bostic, who has been among the more dovish Fed officials this year, said Tuesday he doesn’t think policymakers need to raise interest rates any further and that policy is hawkish enough to get inflation back to its 2% target. bring to.
Several other officials have argued this week that a rise in long-term Treasury yields since the September meeting could reduce the need for further rate hikes. Investors see less than a 20% chance of another quarter-point rise when policymakers next meet on October 31 and November. 1, in line with pricing on the futures markets.
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