Federal Reserve Bank of Atlanta President Raphael Bostic said policy makers could potentially pause interest-rate increases in September after hiking by a half point at each of their next two meetings. “I have got a baseline view where for me I think a pause in September might make sense,” Bostic told reporters Monday following a speech to the Rotary Club of Atlanta. “After we get through the summer and we think about where we are in terms of policy, I think a lot of it will depend on the on-the-ground dynamics that we are starting to see. My motto is observe and adapt.” Bostic repeated that he supports Chair Jerome Powell’s plan to raise rates by a half point at the Federal Open Market Committee meetings in June and July, adding the caveat that an upside surprise on prices could call for more aggressive action. Inflation has been running close to a four-decade high and at rates more than triple the central bank’s 2% target.
Source: The Bond Buyer
