Fed’s Bostic: Confident of US economy in 2018

• 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)