Atlanta Federal Reserve President Raphael Bostic told CNBC on Monday that he’s comfortable with the central bank’s ultra-loose policy even as inflation gains steam in the U.S. economy. “We are still 8 million jobs short of where we were pre-pandemic,” Bostic told CNBC … Currently, the Fed is keeping short-term benchmark borrowing rates anchored near zero and is buying at least $120 billion of bonds each month. That has come even as the Consumer Price Index lurched up 4.2% in April, well above Wall Street’s expectations, and as Bostic’s own Atlanta Fed GDPNow tracker is putting second-quarter growth at 10.5%. However, April’s disappointing jobs report, with nonfarm payrolls growing just 266,000 against projections for 1 million, has Fed policymakers likely on hold, where Bostic said he will be until he sees a broader economic recovery.
Source: CNBC
