Fed official Bostic expects inflation to fall, but warns the Fed needs to be cautious about rate cuts

The Golden Finance reported that Raphael Bostic, President of the Atlanta Fed, stated that given the uneven progress in combating inflation, policymakers should remain cautious and keep the Interest Rate at a relatively high level in order to achieve price stability. Bostic said in a podcast recorded on December 9 and released on Tuesday that he expects the inflation rate to continue to gradually decline this year, potentially reaching the Fed’s 2% target, despite at times appearing to be stalled or with rapid price increases, inflationary pressures will diminish. Bostic said, ‘Considering the Fluctuation of inflation indicators, I believe that policymakers should maintain a more cautious attitude.’ ‘I want to ensure that we get the right signals and ensure that our policies will be adjusted in a timely manner based on these correct signals. If we must make a mistake, I would rather err on the side of a higher Interest Rate,’ Bostic said in the podcast. ‘I want to ensure that the inflation rate reaches 2%, which means we may have to keep the policy Interest Rate at a level higher than people’s expectations for a longer period of time.’