Federal Reserve Bank of Atlanta President Raphael Bostic To ensure a soft landing, he said he would favor a slower pace for interest rate increases with no more than 1 percent more hikes.

“If the economy proceeds as I expect, I believe that 75 to 100 basis points of additional tightening will be warranted,” Bostic Prepared remarks for a speech to be delivered in Fort Lauderdale (Florida) on Saturday. “It’s clear that more is needed, and I believe this level of the policy rate will be sufficient to rein in inflation over a reasonable time horizon.”

Bostic’s plan would Continue to increase and shift away from 75-basis-point increases rates He said that he was able to increase the amount by as high as 4.75%-5% during the subsequent meetings. “moderately restrictive landing rate” Where is the Fed would To maintain downward pressure on prices, you can keep the lid on for a longer time.

Fed Officials reduced interest rates On Nov. 2, the benchmark rate was increased by 75 basis points, bringing it to a range between 3.75% and 4%. A number of policy makers indicated they may consider a 50 basis point increase depending on how the economy performs in December.

“In terms of pacing, assuming the economy evolves as I expect in the coming weeks, I would be comfortable starting the move away from 75-basis-point increases at the next meeting,” Bostic Presented at the Southern Economic Association annual meeting.

Bostic’s view of around 4.75% to 5% as a peak rate is less aggressive than some of his more hawkish colleagues. St. Louis Fed Thursday’s call by President James Bullard rates Minimum 5% to 5.25%. The charts show that the policy rate is 5% to 7.5%. would Versions of a popular monetary policy guideline are recommended.

While Bostic Reiterated that there are “glimmers of hope” He said that supply disruptions have gotten less frequent. inflation It was a “mixed bag” It was not easy to fight price pressures.

“My baseline outlook is that the macroeconomy will be strong enough that we can tighten policy to that point without causing undue dislocation in output and employment,” Bostic said. 

“I do not think we should continue raising rates until the inflation level has gotten down to 2%. Because of the lag dynamics I discussed earlier, this would guarantee an overshoot and a deep recession,” He stated.

Bostic Once policy is sufficiently restrictive, he envisages a long pause. rates To ensure that there is not a sudden reversal inflation didn’t revive in a way similar to the experience of the 1970s. He urged policymakers to “remain purposeful and resolute” until inflation lowered.

“If it turns out that that policy is not sufficiently restrictive to rein in inflation, then additional policy tightening actions may be appropriate,” Bostic said. “On the other hand, if economic conditions weaken appreciably — for example, if unemployment rises uncomfortably — it will be important to resist the temptation to react by reversing our policy course until it is clear that inflation is well on track to return to our longer-run target of 2%.”

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