The U.S. Federal Reserve may need to lift borrowing costs higher than previously anticipated given the unexpectedly strong reading on jobs gains in January, Atlanta Federal Reserve Bank President Raphael Bostic said on Monday.
Unless the report proves to be anomalous, “It’ll probably mean we have to do a little more work,” Bostic told Bloomberg News. “And I would expect that that would translate into us raising interest rates more than I have projected right now.”, though that is not his base case.
Bostic had previously said he expects the Fed to need to push its benchmark rate, now in the 4.5%-to-4.75% range, to the 5%-to-5.25% range in order to get policy sufficiently restrictive to bring inflation back down to the Fed's 2% target. As of December, most of his colleagues agreed.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bostic says strong jobs report may spur Fed to raise interest rates even higherAtlanta Fed chief said U.S. interest rates may have to rise higher than he expected to subdue inflation in the wake of January's stunningly strong jobs report.
Read more »
Upbeat Economic Data Keep Investors on Edge About FedWith employers ramping up hiring across industries from hospitality to healthcare to retail, investors say it is difficult to imagine the U.S. slipping into recession soon
Read more »