Reply To: Federal Reserve Raises Rates for First Time Since 2018 as Expected by 25 Basis Points


Atlanta Fed President Raphael Bostic in an interview with the Financial Times:

Every option is on the table for every meeting
If the data say that things have evolved in a way that a 50 basis point move is required or [would] be appropriate, then I am going to lean into that
Comfortable with moving in successive meetings
Sticks to 3 rate increases in 2022 with the first in March
Will be looking for deceleration in monthly CPI price gains
Looking for further evidence that rising wages are not feeding meaningfully into higher inflation
Encouraged by latest employment cost index and expects a moderation in wage growth going forward
Says markets are acting rationally and responding with tighter financial markets
Supports reducing the $9T balance sheet as quickly as possible without impairing market functioning
He is optimistic on the economy
If we do three hikes, that’ll still leave our policy in a very accommodative space
The market is now pricing up to 5 fed funds increases in 2022

  • This reply was modified 2 years, 5 months ago by TradersCom.