Fed’s Bostic Says Half-Point Move Is Possible If Inflation Continues By Bloomberg

©Bloomberg. Raphael Bostic, president and chief executive officer of the Federal Reserve Bank of Atlanta, speaks with members of the Harvard Business School Club of Atlanta at the Buckhead Club in Atlanta, Georgia, USA on Wednesday, February 19, 2020. Bostic said he doesn’t see risk levels rising to a point where they can (Bloomberg) — Federal Reserve Bank of Atlanta President Raphael Bostic said he prefers to raise interest rates by 25 basis points at the Federal Open Market meeting Committee in March and would consider a larger half-point move if monthly inflation readings do not fall from elevated levels. “I still support a 25 basis point move at the March meeting,” Bostic said Monday in a virtual discussion with Harvard University students. “One data point I look at in particular is the monthly change in inflation. As far as we start to see that trend decline, I’ll be pretty comfortable with a 25 basis point move. If that continues at high levels, or even goes the other way, then I really should be looking at a 50 basis point move for March.” February consumer price data will be released on March 10, five days before the FOMC begins its two-day policy meeting. Economists polled by Bloomberg News expect the consumer price index to rise 0.7% from the previous month and 7.8% year-on-year as Fed officials last week stuck to their decision to raise interest rates next month, Despite the uncertainty posed by the Russian invasion of Ukraine, with Governor Christopher Waller discussing the possibility of a half-point move, central bankers recognized the risks of the conflict, which has caused one of the worst security crises in Europe since World War II caused oil prices to rise, but emphasized the need to contain the highest US inflation to face in 40 years. Bostic, who will not vote on monetary policy this year, said he wanted to make sure no one would be surprised by the possibility of a bigger move. “Historically, our moves have been in 25 basis point increments over the past 10 years,” he said. “I heard and got the feeling that many expected that this was the only type of movement we could do. I actually think that’s wrong. We need to make sure that people have different levels of movement in mind, and awareness of that is possible.” Bostic added that each of the seven FOMC meetings this year will be important for a potential move. “Each meeting is live for us,” he said. “As data comes in, we will have to make a judgment about what goes into each phase of the road happens.” ©2022 Bloomberg LP Disclaimer: Fusion Media would like to remind you that the data on this website is not necessarily real-time or accurate. All CFDs (stocks, indices, futures) and Forex prices are not provided by exchanges but rather by market makers, and therefore prices may not be accurate and may differ from the actual market price meaning prices are indicative and not suitable for trading purposes, therefore Fusion Media will not bear any responsibility for any trading losses you may incur as a result of the use of this data. Fusion Media or anyone associated with Fusion Media assumes no liability for for loss or damage resulting from reliance on any information, including data, quotes, charts and buy/sell signals on this website. Be fully informed about the risks and costs associated with trading the financial markets, it is one of the riskiest forms of investment possible.

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