MNI BRIEF: Bostic Says Liftoff Could Occur As Early As H2 2022

Atlanta Fed President Raphael Bostic said Monday that he could see liftoff of its benchmark interest rate in as early as late 2022, assuming the economy performs better than expected currently.

"I do think there is some possibility that the economy could come back a bit stronger than some are expecting, and if that happens I am prepared to support pulling back and recalibrating a bit of our accommodation and then consider moving the policy rate but I don't see that happening in 2021," Bostic said in an event at the Rotary Club of Atlanta. "A whole lot would have to happen for us to get there, and then we'll see into 2022, maybe the second half of 2022, or even 2023 where that might be more in play."

Thus far the economic rebound has shown to be a "very uneven type of experience," Bostic said, but the baseline medium-term outlook is for a "robust" economic recovery. Nonetheless, the Atlanta Fed chief said there is a "lot of work to be done" to help the economy recoup the 10 million jobs to get back to pre-pandemic levels and fiscal policymakers will have to revisit the need for more support when the most recent USD900 billion package begins to wane in March.