Atlanta Federal Reserve Chairman Raphael Bostic said he believes the agency can raise interest rates to deal with strong inflation without pushing the nation’s economy into recession. “The overall goal of the Federal Open Market Committee (FOMC) is to bring inflation back to our target without causing significant economic disruption,” Bostic wrote in an article on the Atlanta Fed’s website on Tuesday. Said. “While it is a delicate undertaking, I believe the economic conditions, including the labor market, are strong enough to allow us to achieve this result.”
Bostic is not a voting member of Fomc this year. The Fed is expected to raise interest rates by half a point at its June and July meetings, followed by further increases as it tries to push inflation down from its 40-year high.
While most central bankers are optimistic that this scenario can be avoided, some economists fear that the US central bank’s path will lead to a contraction in the economy and an increase in unemployment.
Saying that he expects to increase interest rates rapidly, Bostic said, “I plan to move forward purposefully and recklessly. During the pandemic, we have seen that events and changes in the market can be rapid and in ways that will dramatically change the prevailing economic dynamics.”
The Fed official added that he supports raising interest rates, but added that the central bank may need to halt rate hikes in September to assess the economy’s performance.
source: Noticias
