On January 8th, Atlanta Fed President Raphael Bostic stated that given the uneven progress in combating inflation, policymakers should remain cautious and prefer to keep interest rates at a higher level in order to achieve price stability goals. Bostic stated in a podcast recorded on December 9th and released on Tuesday that he expects the inflation rate to continue to gradually decline this year and is expected to reach the Federal Reserve’s target of 2%. Although progress may seem stagnant or price increases may be rapid at times, inflationary pressures will ease. Bostic said, ‘Considering the volatility of inflation indicators, I believe decision-makers should maintain a more cautious attitude.’. I want to ensure that we receive the right signal and that our policies are calibrated in a timely manner based on this correct signal. If I have to make a mistake, I would rather make it on high interest rates, “Bostic said in the podcast. I want to ensure that the inflation rate reaches 2%, which means we may have to maintain the policy interest rate at a level higher than people’s expectations for a longer period of time.
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