MNI BRIEF: Bostic Says Fed Hikes Won't Stop Job Growth

Federal Reserve Bank of Atlanta President Raphael Bostic Tuesday repeated that he continues to see a need to begin policy normalization and expects that Fed hikes will not stop continued job growth.

"I don't feel that tension right now in terms of our thinking about policy," Bostic said in a discussion about the central bank's dual mandate, while noting he sees maybe four hikes this year. "It's a real strong signal that the economy has legs to stand on its own, and there's a momentum that is carrying through that will allow us to continue to see job growth through the course of this year as we think about getting our policy in a more regular stance."

The Atlanta Fed chief said he does not see a wage-price spiral right now and added that it will be hard to get inflation below 3% this year. "There are some scenarios where the year-over-year inflation by the end of year is going to be somewhere in the 3.2 to 3.3%," he said, adding that he's thinking al lot about energy prices and is expecting "significant upward pressure" due to the situation in Europe.