During an interview with Bloomberg on Friday, Federal Reserve of Atlanta Chairman Raphael Bostic predicted that “it will only take a while” for inflation to hit 2% and that the Federal Reserve will be in a restrictive position “until 2024”, and declared that inflation is wide.
Bostic said: “We are, today, in a restrictive position and as inflation continues to decline, the degree to which it is restrictive actually increases as the gap between the rate of inflation and our interest rate widens. So I think that will put enough strain on the economy to keep it slowing down, but again, I don’t expect it to be a two or three month period. My perspective is that we will still be in restrictive territory until 2024, and it will just take a while for the inflationary pressures we have seen over the last year and a half to fully dissipate and bring us back to 2%” .
He added: “(I)n all of these indices, they track the prices of a number of different goods. At the height of the inflation problems, 80% of the commodities they tracked had inflation rates of 5% or more. Today it is 28%. And — it’s in the CPI — and then, usually, it’s 15-20. So if we can get back to that, that’s a good thing.
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