MNI China Daily Summary: Friday, April 26

MNI BRIEF: China, US Should Strengthen Dialogue, Cooperation

MNI BRIEF: SNB Framework Reform 'Playing With Fire' - Steiner

MNI: PBOC Conducts CNY2 Bln Via OMO Fri; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS FRI

MNI: PBOC Sets Yuan Parity Lower At 7.1056 Fri; -4.56% Y/Y

MNI: BAKER HUGHES US RIG COUNT 613; OIL RIGS 506; GAS RIGS 105

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL APR INDEX 77.2

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Bostic Not In A Mad Dash Hurry To Get To 2% Inflation

FED
Fixed Income BulletsHomepagemarkets-real-timeCreditBulletMarketsEmerging Market NewsForeign Exchange Bullets
Bostic ('24 voter) in Q&A:
  • Q: Is this latest rise in inflation an anomaly?
  • Bostic: Inflation is too high and we need to get it to our 2% target. It used to be a whole lot higher but we still have a ways to go. I have long suspected that the pathway to 2% is going to slower than people expect and it’ll be bumpy.
  • The more important thing is what direction the trend line is going in, and it’s still going the way we want it to, but it’s slow. The economy is producing a lot of jobs and if that can happen while inflation moves towards 2% then I’m comfortable being patient. I think our stance is restrictive and it will get eventually us to 2%, butI’m not in a mad dash hurry to get there if all these other goods things are happening. I’ll be watching labor markets for job creation and wages.
  • My outlook has inflation continuing to fall over the next two years, GDP growth slowing but not cratering with no recession. I’m of the view that things will be slow enough this year that we won’t be in a position to reduce rates until toward the end of the year [that’s an unchanged view, seeing one cut late this year]. I’m grateful that the economy is growing fast inflation has come down off of its heights but I’ve got to be vigilant.
239 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Bostic ('24 voter) in Q&A:
  • Q: Is this latest rise in inflation an anomaly?
  • Bostic: Inflation is too high and we need to get it to our 2% target. It used to be a whole lot higher but we still have a ways to go. I have long suspected that the pathway to 2% is going to slower than people expect and it’ll be bumpy.
  • The more important thing is what direction the trend line is going in, and it’s still going the way we want it to, but it’s slow. The economy is producing a lot of jobs and if that can happen while inflation moves towards 2% then I’m comfortable being patient. I think our stance is restrictive and it will get eventually us to 2%, butI’m not in a mad dash hurry to get there if all these other goods things are happening. I’ll be watching labor markets for job creation and wages.
  • My outlook has inflation continuing to fall over the next two years, GDP growth slowing but not cratering with no recession. I’m of the view that things will be slow enough this year that we won’t be in a position to reduce rates until toward the end of the year [that’s an unchanged view, seeing one cut late this year]. I’m grateful that the economy is growing fast inflation has come down off of its heights but I’ve got to be vigilant.