Trial now
AUSSIE BONDS

A Little Steeper Overnight

US TSYS

Belly-Led Weakness On Monday

AUSSIE 10-YEAR TECHS

(Z1) Bearish Price Sequence

MNI BRIEF: Fed's Bostic Says Inflation Rises Should Recede

MNI (Washington)
(MNI)

Atlanta President spoke after Wednesday's CPI report showed monthly price slowdown and 5.4% YOY gain.

Sign up now for free access to this content.

Please enter your details below and select your areas of interest.

Atlanta Fed President Raphael Bostic said most of the recent inflation gains should recede, speaking Wednesday after annual consumer prices rose 5.4% for a second month in July.

"I expect price inflation to average close to our target over the longer term," he said. "Obviously, we have seen inflation rise above 2 percent as the economy recovers from the pandemic downturn. But most of that rise is fueled by forces that should recede over time," Bostic said in prepared remarks in a speech to the Chautauqua Institution.

Bostic earlier in the week said he favors the start of a fast taper later in the fall, seeing a rate hike in late 2022, and has recently upped his forecast for headline PCE inflation to the 3.5%-3.6% range by the end of the year. The US Bureau of Labor Statistics reported Wednesday monthly CPI growth in July hit the slowest pace in five months.