Fed’s Bostic Favors Raising Rates as High as 4.5% by Year-End
- Bostic says ‘not so fast’ on market expectations of rate cuts
- He says central bank is ‘not out of the inflationary woods’
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Federal Reserve Bank of Atlanta President Raphael Bostic said he favors lifting interest rates to between 4% and 4.5% by the end of this year, and then keeping the tightening in place to reduce inflation that remains near a four-decade high.
“I would like to reach a point where policy is moderately restrictive --between 4 and 4 1/2 percent by the end of this year -- and then hold at that level and see how the economy and prices react,” Bostic said in prepared remarks Wednesday to Northwestern University’s Institute for Policy Research.