Atlanta Fed Chairman Raphael Bostic has been cautious about raising US interest rates by 75 basis points, estimating that the next moves of the US Federal Reserve will be limited to increases of 50 basis points. each time.
“For me, 50 basis points is already a pretty aggressive move. I do not think we need to move even more aggressively,” Bostic said in an interview with Bloomberg.
“In my opinion, we will move twice – maybe twice, maybe three times – and see what happens next,” said the president of the Atlanta Fed. “We will see how the economy reacts if inflation continues to move closer to the 2% target. And then we can pause and see how things go,” he said.
Last week, the Fed raised interest rates by 50 basis points to 0.75% to 1%. Fed Chairman Jerome Powell has hinted that the central bank is considering raising interest rates by 50 basis points in June and July. leading interest rates to the level of 1.75% to 2%.
Source: Capital
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