Atlanta Federal Reserve President Raphael Bostic said on Tuesday that the policy rate is sufficiently restrictive to get to the 2% inflation target, per Reuters.
Key quotes
“Impact of war in Israel on the economy is uncertainty.”
“Inflation has improved considerably.”
“Still a long way to go to get to inflation target.”
“There’s certainly more for us to do.”
“I don’t have a recession in my dot plot.”
“I think our policy rate is sufficiently restrictive to get inflation to 2%.”
“A lot of our policy impact is clearly yet to come.”
“If things come in differently from my outlook we might have to increase rates, but that’s not my current outlook.”
“We don’t need to increase rates any more.”
“We are in process of finding a new equilibrium on rates.”
Market reaction
The US Dollar Index edged slightly lower following these comments and was last seen losing 0.15% on the day at 105.90.
Source: https://www.fxstreet.com/news/feds-bostic-we-dont-need-to-increase-rates-any-more-202310101356