Atlanta Fed President Raphael Bostic told The Wall Street Journal in an interview that it’s a “coin toss” right now between supporting a half point or a 75 basis point rate hike in September. He said if data remains strong and inflation doesn’t soften, it may make the case for the larger increase. Bostic, who isn’t a voting member of the Federal Open Market Committee, also discussed market expectations the Fed could lower rates next year. He said some weakening of the economy is to be expected. “It’s going to be really important that we resist the temptation to be too reactionary, and really make sure that we get inflation well on its way to 2% before we take any steps to increase accommodation in our policy stance,” the Atlanta Fed’s president said.
Source: Marketwatch
