Atlanta Fed President Raphael Bostic recently crossed the wires saying that the Fed was in the range of neutral but could still be slightly below that rate. Bostic further reiterated that he was in favour of “wait and watch’.
Key quotes (via Reuters)
- Dots in dot-plot don’t represent a Fed decision.
- Open to discussing higher inflation target.
- Yet to see compelling reason to ‘ditch’ inflation target.
- Declines to rule out the use of negative rates if needed.