Free Trial

MNI BRIEF: Fed's Bostic Expects No Recession As Economy Slows


Federal Reserve Bank of Atlanta President Raphael Bostic on Tuesday reaffirmed his view that the Fed's benchmark interest rate is high enough to get inflation under control without dragging the economy into recession.

"Our policy rate is sufficiently restrictive position to get inflation down to 2%. We have clearly moved into a restrictive place, the economy is clearly slowing down, and a lot of our policy impact has yet to come," he told the American Bankers Association's annual convention.

In his quarterly forecasts last month, "Ihavetheeconomyslowingdown,butnotmovingintoarecessionarymodebecausethere'salotofmomentumthatwaspresent.AndIthinkthatisgoingtobeabletostopalotof the slowdown." The outbreak of war in the Middle East adds to the list of unanticipated events of recent years and underscores that officials need to be nimble and ready to adapt, he said.

(See: MNI INTERVIEW: Fed Done Hiking, Will Cut As Soon As Q1-Tilley)

MNI Washington Bureau | +1 202-371-2121 |
MNI Washington Bureau | +1 202-371-2121 |

To read the full story



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.