It must not maintain a restrictive policy position for too long

Atlanta Federal Reserve President Raphael Bostic said on Wednesday that the Fed was in a favorable position, but added that it should not maintain a tight policy stance for too long, according to Reuters.

Key recommendations

“Soft landing for economy may be within reach”.

“The latest inflation reports reinforce my confidence inflation is likely on a sustainable path back to 2%.

“No panic among my business contacts, but I am describing an economy and job market that are losing momentum.”

“Price pressures are easing rapidly and broadly.”

“I’m not too ready to declare victory on inflation as risks remain.”

“The Fed must remain vigilant to ensure that inflation risks continue to decline.”

“I now pay as much attention to the target of full employment as to inflation.”

“The labor market continues to weaken, but it is not weak.”

“Business contacts point to a weakening but still stable labor market.”

“Wage growth is pulling back to a level more favorable to price stability.”

Market reaction

The US dollar remains under bearish pressure following these comments. At press time, the US dollar index was down 0.33% on the day at 101.43.