Fed’s Bostic Sees Inflation Above Goal but Keeps Policy on Track for 2%

Federal Reserve Bank of Atlanta President Raphael Bostic said the U.S. economy is navigating “a transitional period,” with price pressures still running above the central bank’s 2% goal despite a labour market that continues to reflect conditions of full employment. Bostic reiterated that current monetary policy remains calibrated to guide inflation back to target, adding that the unemployment rate has “for some time” been consistent with full employment. He did not signal any immediate shift in interest-rate strategy, suggesting the existing policy stance is viewed as sufficiently restrictive to cool inflation over time.