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Atlanta Fed President Raphael Bostic Tuesday said if trends continue it would be warranted for the central bank to begin pulling back asset purchases, and the yield curve will steepen as the economy heals.
"I'm confident that the yield curve will steepen once again and get us back to more normal conditions," he said. "If things continue, the taper will be warranted, we'll start doing that, and then we'll see how the economy responds to that."
"The trajectory of this economy is solid," said Bostic at a Mid-Size Bank Coalition of America event. "My models, and from the data that I'm seeing, suggest that we are on firm footing towards a full recovery and momentum is going to continue strong even in the midst of the rise of delta."