The Federal Reserve does not need to raise its benchmark interest rate again this cycle unless the economic conditions change in an unexpected way, said Atlanta Fed President Raphael Bostic, on Thursday.
Earlier this month, Bostic said he wanted to pause rate hikes until the end of the year.
Bostic clarified his view that he meant that the Fed was done hiking.
“Now, let me be clear what I mean by ‘pause.’ My view is that we have reached a level of the nominal federal funds rate that should be sufficient to move inflation toward the 2% target over an acceptable timeframe. I realize this suggests a definition of ‘pause’ that brings with it an expectation of no further hikes unless things fail to go according to plan. That’s my baseline case,” Bostic said, in a speech to the Irish Association of Investment Managers annual dinner in Dublin, Ireland.
Bostic said he is beginning to see signs that the cumulative effects of the Fed’s steady rate hikes over the past 15 months “are showing up” in the economy.
He said the Fed was making progress on reducing inflation.
Bostic is not a voting member of the Federal Open Market Committee that decides monetary policy in 2023.
U.S. stocks
DJIA,
SPX,
were higher on Thursday while the yield on the 10-year Treasury note
TMUBMUSD10Y,
rose to 3.86%.
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