Bostic: CPI Could Allow Stepdown To 25bp Hikes

Comments from Atlanta Fed President Bostic (’24 voter) have crossed recently, as he noted that the inflation report released on Thursday was “welcome news” which could facilitate a slowdown to a 25bp hiking pace as of February.

• Bostic highlighted that he would be more comfortable moving at a 25bp pace if communique with businesses pointed to slowing inflation, while noting that signs of slowing wage increase are “also positive.”
• Bostic pointed to a near unanimous feeling amongst businesses re: no meaningful expectations of layoffs. He also alluded to an average of more than 200K new jobs still being produced per month, with his baseline view not looking for a “significant job dislocation.”