“Being more cautious as policy moves into tight territory seems prudent,” Bostic said, even if it turns out that rates have to go up again later.
One thing the Fed should be wary of, Bostic said, is any temptation to cut rates before inflation is “on track” to fall to the Fed’s 2% target, even if the economy were to “weaken appreciably.” “.
The latest inflation data has been lower than expected, but benchmark measures of price increases remain 2-3 times the Federal Reserve’s target level.
With information from Reuters
