Bos­tic Says Rates Should Stay Near Neu­tral Lev­els

The Bond Buyer - - Market News - — Gary E. Siegel

The fed funds rate is “likely” close to neu­tral, so the Fed should be pa­tient and not lift rates to re­stric­tive lev­els, Fed­eral Re­serve Bank of At­lanta Pres­i­dent Raphael Bos­tic said Wednesday.

With un­cer­tainty es­poused by Main Street and Wall Street about the econ­omy while eco­nomic data re­main ro­bust, “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,” Bos­tic told the Chat­tanooga Area Cham­ber of Com­merce, ac­cord­ing to pre­pared text re­leased by the Fed. “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,” he said.

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