Atlanta Federal Reserve President Raphael Bostic said on Tuesday that he did not expect to see the full impact of monetary policy on inflation for a few months, Reuters reported.
Other conclusions
“The Fed should look for other economic signals besides inflation to guide its policy.”
“There are signs that tightening financial conditions may be affecting commercial real estate and banking.”
“The tightening of financial conditions has not yet constrained business activity enough to put a dent in inflation.”
“We anticipate that further interest rate hikes will be necessary.”
“You have to see the indicators of a general easing of inflation.”
“There are glimmers of hope in the inflation of goods, it is necessary to see that the inflation of services also slows down.”
“The labor market remains tight, there is upward pressure on wages.”
“The Fed’s main task is to control unacceptably high inflation.”
“The Fed’s actions risk inducing a recession, but that is preferable to high inflation taking hold.”
“Recession is not a foregone conclusion, the Fed will try to avoid it if possible.”
“There are many scenarios in which a recession could be mild.”
“Once the Fed reaches an appropriately tight policy, it should stay there until there is convincing evidence that inflation is firmly on track toward the 2% target.”
Market reaction
The Dollar Index showed no immediate reaction to these comments and lost 0.6% on the day at 106.30.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
