Fed's Bostic: Policy rate needs to remain at 5.00%-5.25% range well into 2024

Eren Sengezer FXStreet

In an essay published on Wednesday, Atlanta Fed President Raphael Bostic said that he maintains the view the policy rate needs to rise to the 5.00%-5.25% range and remain at that level well into 2024, as reported by Reuters.

"A narrative has gained momentum among some commentators that the Fed should consider reversing its course of raising the federal funds rate lest we go too far and cause undue economic hardship," Bostic further elaborated. "History teaches that if we ease up on inflation before it is thoroughly subdued, it can flare anew."

Market reaction

The US Dollar Index showed no immediate reaction to these remarks and was last seen losing 0.4% on the day at 104.52.

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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