Fed's Bostic: Fed may not need to raise rates three times in 2018 given weak inflation
Atlanta Fed President Raphael Bostic recently delivered his prepared remarks before the Rotary Club of Atlanta, with key quotes, via Reuters, found below.
U.S. central bank may not need to raise interest rates as many as three times in 2018 given weak inflation.
Current federal funds rate of between 1.25 percent and 1.50 percent could already be "approaching" a neutral rate that could be "close to" 2 percent.
I'm concerned public may lose faith in commitment to 2 percent inflation goal, sees it as possible argument for being more patient with future rate increases.
U.S. GDP growth of up to 2.5 percent in 2018.
I anticipate 'modest' impact of tax overhaul on growth, with few businesses in recent survey saying they expect to expand investment or hiring as a result.
Lack of wage and price pressures remains "puzzling" in light of low unemployment.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
