MNI BRIEF: Fed Hikes Should Be Purposeful, Intentional- Bostic

Federal Reserve Bank of Atlanta President Raphael Bostic Tuesday said the central bank should be "purposeful and intentional, but not just running to a number" as it raises interest rates, while adding he is "very much in favor of sales" of MBS down the road.

Forecasting the U.S. economy to grow around 2.6% this year, Bostic at an Atlanta Fed conference pointed to an historically elevated number of job openings in the economy's ability to weather policy normalization and noted he is focusing on monthly inflation figures to see progress. Recent data "suggests there is some moderation" in inflation, he said, adding that businesses have been telling him that demand for products is not falling off.

Still, Bostic said there is a "good possibility that you can see a pretty rapid response" in the economy to the Fed's interest rate increases, but so far there have only been "hints" from businesses that there has been a change in the economy. The Atlanta Fed president said his goal is to see inflation come down while "minimizing" the hit to unemployment. (See: MNI: Fed Must Cool Job Market - Ex-Officials)