On Thursday, Raphael Bostic, President of the Federal Reserve Bank of Atlanta, stated that bringing inflation back to the central bank's target of 2% is his top priority, while emphasizing that long-term economic expansion is particularly helpful for vulnerable groups.
For inflation, it is currently the top priority, "he said." Throughout the entire economy and various population groups, inflation is the most painful force, pushing more people into unstable situations
The Federal Reserve has raised interest rates by more than 5 percentage points since March 2022. Officials have hinted that they are inclined to maintain policy unchanged next month after the recent rise in bond yields has led to a tightening of the financial environment. Federal Reserve Chairman Powell said at another event Thursday that policymakers are "acting cautiously".
Powell's latest comments indicate that the Federal Reserve will once again remain silent at its next meeting, but he also stated that if policymakers see further signs of strong economic growth, they may raise interest rates again. He said, "Considering many uncertainties and risk factors, as well as the progress we have made, the Federal Reserve is acting cautiously
Bostek previously expressed support for suspending interest rate hikes, but he did not comment on the current economic or policy outlook this time.
He publicly stated last week, "I believe our policy interest rates have reached a sufficiently restrictive level to push inflation back to 2%. The economy has started to slow down, and there are still many effects to be seen. In the next few years, there will be many commercial loans to be refinanced, and we will face much higher interest rates. As supply and demand relations begin to balance, in fact, I do not believe that further interest rate hikes are needed in the future
Bostik also said on Thursday that by promoting economic growth in the years before the COVID-19 pandemic, the Federal Reserve kept the economy hot and helped improve the wealth of low-income people and ethnic minorities.
Research tells us that long-term economic expansion has disproportionately helped traditionally marginalized workers, "he cited research by Julie Hotchkiss of the Atlanta Federal Reserve Bank." When the economy cools down, on average, vulnerable workers suffer the most severe setbacks