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Atlanta Fed President Raphael Bostic stuck to his guns Thursday repeating the U.S. central bank likely won’t cut interest rates until the end of the year rolls around, as “we still have a ways to go” before getting inflation back down to the 2% target.
“The pathway to 2% is going to be slower than people expect, and it will be bumpy,” Bostic said in a fireside chat at an event in Fort Lauderdale, Florida.
With inflation falling slower than expected this year, Bostic said he is “comfortable being patient” as the economy and labor market both remain strong.
The Federal Reserve’s monetary-policy stance is currently restrictive, he said, adding “it will slow the economy down and get us to 2%” inflation. And, as long as the labor market holds up, “we can keep rates steady.”
Asked how the U.S. economy fares against that of its developed-nation peers, Bostic said the U.S. “has been an outlier in its strength and resilience. It has done better than every country in Europe and the developing world as well,” he noted, owing to a strong fiscal response.