Fed's Bostic: Phase of high inflation to be longer than initially expected

Eren Sengezer FXStreet

"Phase of high inflation will be longer than we expected initially, perhaps 6 to 9 months instead of 2 to 3," Atlanta Federal Reserve President Raphael Bostic told the NPR on Wednesday, as reported by Reuters.

"7.5 million jobs still lost from the pandemic is a benchmark the Fed needs to watch," Bostic added. "The Fed should avoid declaring victory prematurely in any policy pivot."

Market reaction

These comments don't seem to be having a significant impact on the USD's performance against its rivals. As of writing, the US Dollar Index was virtually unchanged on the day at 91.72.

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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