Atlanta Fed President Raphael Bostic Predicts Longer Period of Higher Interest Rates

InflationMoney Matters
Written By Jennifer Joslyn

📉 Atlanta Fed President Raphael Bostic Predicts Longer Period of Higher Interest Rates.

The Federal Reserve has raised its key interest rate to around 5.4% to curb inflation, but policymakers are at a critical juncture considering whether to raise rates even further or maintain the current level. Raphael Bostic, President of the Federal Reserve Bank of Atlanta, advocates for keeping the benchmark rate stable until 2024 to ensure inflation stays around 2%. Bostic acknowledges the current economic realities, including the pandemic's ongoing effects and the resilience of businesses and families, impacting traditional economic theories. He emphasizes cautiousness and anticipates a continued slowdown while inflation remains a concern. Bostic also expects to keep rates higher for an extended period to combat inflation effectively.

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Jennifer Joslyn
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