Raphael W. Bostic, president and CEO of the Federal Reserve Bank of Atlanta, speaks at a European Financial Forum event in Dublin, Ireland on February 13, 2019.
Clodagh Kilcoyne | Reuters
Raphael Bostic, the president of the Federal Reserve Bank of Atlanta, appeared on CBS’ “Face The Nation” Sunday morning with a continued commitment to the 2 percent inflation target and a cautiously optimistic outlook on the way to get there
The nation’s central bank raised the target federal funds rate by 75 basis points to between 3 and 3 1/4 on Wednesday. Bostic believes the Federal Reserve can reach its 2% inflation target without seriously damaging the economy.
“I think we’re going to do everything we can at the Federal Reserve to avoid deep, deep pain.” Bostic said “Face the Nation.”
The most recent report recorded inflation of 8.3% over the past year. The Fed aims to moderate demand in the economy so that prices can stabilize, but some fear that tighter policies could start more economic turmoil.
Bostic acknowledged that there will likely be job losses as a result of the Fed’s actions. However, compared to previous Fed tightening, Bostic believes “there’s a very good chance that if we do have job losses it will be less than what we’ve seen in other situations,” he told “Face the Nation “.
Bostic sees “positive momentum” in the economy despite two consecutive quarters of negative GDP growth, a signifier used by some to identify a recession.
“We’re still creating a lot of jobs on a monthly basis. And so I think there’s some ability for the economy to absorb our stock,” said Bostic, who noted “considerable job growth” in the his bank’s hometown, Atlanta. “My expectation is that as we go forward and start to get inflation under control.”
