Federal Reserve Bank of Atlanta President Raphael Bostic stated on Wednesday in an essay that he sees inflation cooling further. He noted that he still believes a soft-landing is possible, even though the road to the 2% target "will be bumpy."
"Evidence has continued to accumulate suggesting that tighter monetary policy is biting harder into economic activity. From farmers delaying purchases of high-tech tractors to home builders offering incentives to lure buyers leery of rising mortgage rates, tighter financial conditions appear to be restraining activity more and more," Bostic explained.
Bostic also added that there are "clear signs" that the pricing power of businesses is "diminishing," as it is no longer easy to bump up prices without customer resistance. He concluded by saying that in his view, the good news is that "activity is decelerating but not dramatically enough to portend a destructive economic downturn."
