Fed’s Bostic: If inflation moves "the wrong way" the Fed will have to have rate hikes
Federal Reserve (Fed) President of the Bank of Atlanta Raphael Bostic said on Friday that he believes a neutral zone would be a quarter to a half percentage point below the current policy rate. At a moderated conversation in Birmingham, Alabama, he added that if inflation rises more than expected, the Fed will have to consider rate hikes.
Key takeaways
Think neutral is perhaps a quarter- to a half-percentage-point below current policy rate.
Expect GDP growth of 2.4% in 2026, 2.1% in 2027, and return to trend in 2028.
A lot of fiscal stimulus is coming, will be expansive for economy but will put pressure on inflation.
If inflation moves the wrong way and starts to rise the Fed will have to have rate hikes on the table.
Latest PCE reading is a long way from target of 2%.
Supreme Court ruling will raise questions about whether new supply and pricing standards remain or start to shift back.
Another question is whether the administration has other ways to impose the same tariffs or is constrained."
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.17% | -0.30% | -0.09% | -0.10% | -0.36% | -0.03% | -0.14% | |
| EUR | 0.17% | -0.12% | 0.07% | 0.08% | -0.19% | 0.15% | 0.03% | |
| GBP | 0.30% | 0.12% | 0.21% | 0.20% | -0.06% | 0.27% | 0.15% | |
| JPY | 0.09% | -0.07% | -0.21% | -0.01% | -0.28% | 0.04% | -0.06% | |
| CAD | 0.10% | -0.08% | -0.20% | 0.01% | -0.27% | 0.05% | -0.05% | |
| AUD | 0.36% | 0.19% | 0.06% | 0.28% | 0.27% | 0.33% | 0.22% | |
| NZD | 0.03% | -0.15% | -0.27% | -0.04% | -0.05% | -0.33% | -0.12% | |
| CHF | 0.14% | -0.03% | -0.15% | 0.06% | 0.05% | -0.22% | 0.12% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Author
Agustin Wazne
FXStreet
Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.
