Fed's Bostic: Must not maintain a restrictive policy stance for too long

Eren Sengezer FXStreet

Atlanta Federal Reserve President Raphael Bostic said on Wednesday that the Fed is in a favorable position but added that they must not maintain a restrictive policy stance for too long, per Reuters.

Key takeaways

"Soft landing for economy may be within reach."

"Most recent inflation reports bolster my confidence inflation likely on sustainable path back to 2%."

"No panic among my business contacts but describe an economy and labor market losing momentum."

"Price pressures are diminishing quickly and broadly."

"I am not quite prepared to declare victory over inflation as risks remain."

"Fed must stay vigilant to ensure inflation risks continue to wane."

"I am now giving equal attention to maximum employment objective as inflation."

"Labor market continues to weaken, but is not weak."

"Business contacts point to a loosening but still broadly stably labor market."

"Wage growth pulling back to level more conducive to price stability."

Market reaction

The US Dollar stays under bearish pressure following these comments. At the time of press, the US Dollar Index was down 0.33% on the day at 101.43.

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.

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