By Michael S. Derby
NEW YORK (Reuters) – Federal Reserve Bank of Atlanta President Raphael Bostic said on CNBC Friday that while inflation remains too high it is coming down amid mounting evidence of an economic slowing, and that could open the door to easier monetary policy late next year.
“We have to get a lot closer to 2% before we’re going to consider it, before I would consider any kind of relaxation of our posture. Inflation is job one, we have to get that under control,” Bostic said.
But that’s possible next year, and “I would say late 2024” is on the table for an easing, Bostic said.
The policymaker, who does not hold a vote on the rate setting Federal Open Market Committee this year but will next year, has said in recent remarks he believes the Fed is done raising rates. The central bank is broadly expected to hold the federal funds target rate range steady at between 5.25% and 5.5% at the Oct. 31-Nov. 1 meeting.
Bostic said in the television appearance that information he’s picking up points to an economy which, while still possessing forward momentum, is losing speed.
“When I talk to businesses, they all tell me the slowdown is coming,” Bostic said. “They expect that where we are today is a lot stronger than we will be six months from now,” he said, adding, “I’ve really taken that on board” when thinking about the current stance of monetary policy and how it will play out over coming months.
Bostic also said in his appearance that he’s not expecting a recession.
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