Central Banks
Fed’s Bostic Urges Caution to Avoid Inflicting Unnecessary Pain
- Atlanta Fed president says policy is appropriately restrictive
- Bostic cites a number of measures showing inflation progress
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Federal Reserve Bank of Atlanta President Raphael Bostic said policymakers need to be cautious not to overtighten monetary policy and risk unnecessary harm to the US labor market.
“Based on current dynamics in the macroeconomy, I feel policy is appropriately restrictive,” Bostic said in remarks prepared for delivery at the South African Reserve Bank’s Biennial Research Conference. “I think we should be cautious and patient and let the restrictive policy continue to influence the economy, lest we risk tightening too much and inflicting unnecessary economic pain.”