Atlanta Fed President Raphael Bostic recently crossed the wires arguing that the Fed needed to be patient and seek ‘greater clarity’ on economic risks as it mulls further rate increases.
Key quotes (via Reuters)
- The appropriate response is to be patient in adjusting the stance of policy and to wait for greater clarity about the direction of the economy and the risks to the outlook.
- Should conditions play out along my baseline outlook, I see little need to engage in restrictive monetary policy and push the federal funds rate above a neutral stance.
- Business contacts indicate firms are becoming defensive in planning for a slow-down, holding off on investment plans.
- Likely slowing growth in 2019 not result of fundamental weakness in economy, but return to trends driven by slow growth in labour force.
- Message from markets is that both main street and wall street are concerned about risks to growth.
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