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Fed's Bostic Trims His Rate Outlook for 2019 to a Single Hike

  • Atlanta Fed chief says balance sheet roll-off should continue
  • U.S. economy is in a pretty good position, risks two-sided
Raphael Bostic
Raphael BosticPhotographer: David Paul Morris/Bloomberg

The U.S. central bank should only raise interest rates once this year but keep going with its plan to gradually shrink the balance sheet, said Raphael Bostic, president of the Federal Reserve Bank of Atlanta and one of the Fed’s more dovish policy makers.

“Coming into this year, a year ago, I saw two moves for 2019. Right now, I’m at one move for 2019,” Bostic told the Rotary Club of Atlanta on Monday, stressing the U.S. economy could do better, or worse, than forecast. “If it’s an upside surprise, my prediction would be to go from one rate move to two, if it’s the downside it would go from one to zero,” he said.