Last job report shows economy has momentum to absorb big rate increases.
Atlanta Fed President Raphael Bostic said Monday he's confident the U.S. economy can withstand another 75 basis point interest-rate increase later this month, but policymakers should wait to see how the economy fares before judging future hikes.
"It's really imperative that we tackle this inflation, get it back down on a trajectory where it starts moving toward our 2% target, and that's got to be the priority," said Bostic on a conference call with reporters, adding that the Fed can raise rates to around 3% this year and avoid a recession. Last week's labor market report "tells me that there's enough momentum in the economy."
Recent data "pointed to a need for us to get much closer to that neutral stance faster," he said. Richmond Fed Research Director Kartik Athreya told MNI the Federal Reserve should raise interest rates aggressively until there are clear signs of a slowdown in inflation.