Fed's Bostic: We predict more rate hikes will be necessary

Atlanta Fed President Raphael Bostic said he sees little evidence that the Fed’s sharp tightening of monetary policy is slowing inflation. While Fed officials acknowledged recent encouraging news on U.S. consumer prices, they emphasized the need to keep raising interest rates. Statements Tuesday by two Fed chairmen and two governors maintained policymakers’ cautiously hawkish stance that inflation is too high, even as they signaled they are ready to ease the scale of rate hikes. “There are glimmers of hope. I’ll need to see some broad-based easing of inflation,” Bostic said in an article on the Atlanta Fed’s Web site Tuesday, citing signs including slowing gains in goods prices. Bostic said the goal of monetary policy is to “be restrictive enough to get inflation back to our objective,” adding, “We’re not there right now, and so I anticipate further rate hikes will be needed.” Bostic did not say whether he would support slowing the pace of rate hikes or how much the Fed might need to raise interest rates from the current 3.75-4.0%.