Rate Statement by Atlanta Fed President Raphael Bostic

Atlanta Fed President Raphael Bostic underlined that there is no need for an increase of more than 50 basis points.

Atlanta Fed President Raphael Bostic evaluated the 50 basis point rate hike by the American Federal Reserve (Fed) this month as an "aggressive step", and stated that the Fed could continue to increase at this rate, but that an increase of more than 50 basis points would not be required. Raphael Bostic said, "The 50 basis point rate hike in the last 20 years is a very aggressive step. I don't think we need to be any more aggressive than that. We can stay at this pace and see how the markets evolve." Noting that the momentum of the United States' economy is in good shape, Fed Chairman Bostic added, "Inflation is very high and we need to act decisively and purposefully to get it under control." Expressing that the decision will be guided by the course of the economy, Bostic stated that he hopes the pressures on issues beyond the Fed's control, such as supply chain problems, will improve. Minneapolis Fed Chairman Neel Kashkari also said in an interview with CNBC that the Fed will change its approach if data is different than expected. Emphasizing that the employment market is strong, Kashkari underlined that he does not doubt that inflation will fall to the 2 percent target.