Atlanta Fed President Raphael Bostic said Wednesday that the baseline scenario right now includes a 75 basis point (bps) rate hike in November and a 50 bps hike in December, Reuters reported.
Other conclusions
“Inflation is too high and not moving fast enough back to target.”
“The lack of progress means that the Fed will have to be moderately restrictive with rates in the range of 4.25% to 4.5% by the end of the year.”
“Supply-side improvements have not come as quickly as expected.”
“We are keeping an eye on international developments, but it looks like the United States has considerable momentum, less susceptible to contagion.”
“Some signs of improvement on the demand side, but they are preliminary.”
“There are no indications of dysfunction in the Treasury market at this time.”
“Beyond the housing market, signs of cooling demand include businesses reporting a sharp decline in consumer discretionary purchases, greater ease of hiring.”
“Below trend growth, more rational labor markets, weak demand for a broader range of products would be signs of weakening inflation.”
“Rent stabilization would be a really positive development for the Fed.”
“I don’t think a US recession is a foregone conclusion, as I expect the unemployment rate to rise only to 4.1%.”
Market reaction
The Dollar Index showed no immediate reaction to these comments and was last seen losing 0.1% on the day at 114.07.
Source: Fx Street
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