Fed’s Bostic: Fed needs to remain vigilant

Federal Reserve (Fed) Bank of Atlanta President Raphael Bostic said that inflation is too high and needs to come down, and that the Fed should be more patient for now, in an interview for CNBC.

Key quotes

Inflation is too high and it needs to come down.

For two years inflation has been stuck in place.

There are still tariff effects on prices that have yet to come through.

Outlook is that inflation will 'mark time' for most of this year.

Fed needs to remain vigilant on inflation.

Fed should be more patient for now.

A case can be made that inflation and job risks are in balance right now.

The Fed does not need to be moving down right now.

The downside risk to labor markets is 'much further away' than it was.

The last round of contacts with businesses were more muted on inflation.

Do not expect inflation to rise, but feel it could persist.

Do not know Warsh well, but heard he is 'quite thoughtful.'

The balance sheet grew in response to crisis, but should back out of mbs.

The current size of the balance sheet is about right, needs to grow with the economy.

Would be best to hold only treasury securities that match the market.

The independence of the Fed is always a concern.

Will have to see how Warsh performs in the role.

Every chair comes with a view about the world, but rate decisions involve 12 people.

Two cuts is not baseline case, expect inflation to be stubborn.”