Speaking on Bloomberg television
The Atlanta Fed president adds:
- Do not know how trade tariffs will end up
- Sees fiscal stimulus having a robust impact in the short run
- Delaying impact of tariffs on economy until he sees more
- He expects inflation to come in a bit higher though.
- Sees inflation hitting 2% in the next quarter or two
- He is comfortable going over 2% inflation by some amount
- Does not expect radical changes in the Feds framework
- Sees neutral rate in 2.25%-2.75% range . That rate might increase as the economy progresses
- Trade protectionism tends to be difficult for economic growth
- Does not view market volatility for the Fed.
Bostic is a middle of the roader and a relatively new Fed President. He is a voting member in 2018.
US yields are moving to new session highs with the 10 year up to 2.8302% (up 2.7 bp). The 30 year is up to 3.07% (up 3.4 bp)