Fed’s Bostic: Policy will need to be resolute and patient

Atlanta Federal Reserve (Fed) President Raphael Bostic said on Tuesday that he expects inflation to continue to come down slowly and unevenly. He also sees the “tight labor market” to continue moving forward. 

Speaking about the US economy at the Harvard Business School Club of Atlanta Alumni Leadership Lunch, Bostic explained his outlook for inflation and the labor market to cool further.

The Fed is in a good place, with a pathway to fixing inflation without much labor market pain, added Bostic. He warned that the central bank is not going to “jump at the first data point”. 

Market reaction

The US Dollar index (DXY) is falling 0.35% on Tuesday, trading around 102.15, while US Treasury yields are moving sideways.