Feds Bostic: inflation is too high, not sustainable

<ul><li>In many regards, US is still in a pandemic economy</li><li>A lot of the strength is due to pandemic support.</li><li>Inflation is too high, not sustainable.</li><li>Current inflation is not due to excessive risk-taking, but the pandemic response.</li><li>Trajectory on inflation right now is "in the right direction", and Fed will ensure that continues</li><li>Recession is not the baseline outlook</li><li>The biggest risk is not moving inflation back to target; all Fed is in consensus on that view</li><li>Right now policy is clearly in restrictive territory. Fed can be patient</li><li>The economy is starting to slow down with job growth slowing down and inflation coming down, among other signs</li><li>Fed still is time to let restrictiveness play out, but would not be comfortable if inflation stalls or expectations rise</li><li>Right now expectations are pretty well anchored</li></ul><p>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.</p>

This article was written by Greg Michalowski at www.forexlive.com.