Federal Reserve Bank of Atlanta President Raphael Bostic
- In many regards, US is still in a pandemic economy
- A lot of the strength is due to pandemic support.
- Inflation is too high, not sustainable.
- Current inflation is not due to excessive risk-taking, but the pandemic response.
- Trajectory on inflation right now is “in the right direction”, and Fed will ensure that continues
- Recession is not the baseline outlook
- The biggest risk is not moving inflation back to target; all Fed is in consensus on that view
- Right now policy is clearly in restrictive territory. Fed can be patient
- The economy is starting to slow down with job growth slowing down and inflation coming down, among other signs
- Fed still is time to let restrictiveness play out, but would not be comfortable if inflation stalls or expectations rise
- Right now expectations are pretty well anchored
Bostic has tilted more toward the more dovish of the Fed members of late preferring to let the tightenings to date, work their way through the economy.