MNI BRIEF: Fed's Bostic Sees Four Hikes Thru 2023

Atlanta Fed President Raphael Bostic said Thursday the conditions needed to begin tapering the central bank's asset purchases have been achieved and he now sees four rate hikes through 2023.

"We can really begin to pull back some of the emergency policy that we've had and that would be starting the taper soon," he said. Bostic, an FOMC voter this year, told reporters on a call he continues to see liftoff "later in the year 2022," but has upped his view for 2023, now seeing three additional hikes in 2023.

"For 2023 I've actually added one more increase so there are three increases in my forecast," he said. "In part this is because my models are having the economy operating very strong through 2022 and nearing full employment by the end of 2022 such that there won't be impediments to normalization in 2023."

Bostic, who sees the neutral rate at 2.5%, said he doesn't see rates getting to neutral before the end of 2024. The Atlanta Fed chief also added that while there have been sharp increases in short-term price expectations, signs from long-run expectations suggest expectations remain anchored.