Fed's Bostic: Not ready to rule out further rate hikes if required, but does not see need

<p>Fed's Bostic (non-voting) is speaking again: </p><ul><li>Believes that the effects of monetary policy adjustments that began last year are starting to show up in the real economy, including labor markets.</li><li>Reiterates he doesn’t see additional Fed rate hikes as needed</li><li>Fed policy in place to bring inflation back to 2% target</li><li>Inflation is in a gradual cooling trend that should continue</li><li>Expects Fed can meet inflation goal without causing severe downturn</li><li>Not ready to rule out further rate hikes if needed</li><li>Does not see Fed rate cuts in 2023 or 2024</li><li>Inflation should cool even if Fed leaves current policy in place</li><li>He points out that the labor market conditions are more like those before the pandemic – still tight but less so than over the past few years.</li><li>Bostic reaffirms his commitment to reducing inflation, even if it results in a rise in unemployment.</li><li>Monetary policy has only recently moved into restrictive territory</li><li>He mentions that the last three years have been a lesson in the uncertainty and challenges faced by policymakers, but he assures that the FOMC will not waver in its fight to bring down inflation.</li></ul><p>Bostic has shifted to more dovish of late. He does hedge a bit with his comment that he is not ruling out further hikes, but he is tilting toward letting the hikes of the past, work through the economy now.</p><p>For the full text of his speech, <a href="https://www.atlantafed.org/news/speeches/2023/06/29/bostic-inflation-should-continue-to-fall?utm_medium=email&amp;utm_source=mailchimp&amp;utm_campaign=speeches" target="_blank" rel="nofollow">CLICK HERE</a>.</p>

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