Federal Reserve Bank of Atlanta President Raphael Bostic said on Monday that interest rates will have to remain at a high level "well into 2024" and that would it be fair to assume the Fed is willing to overshoot on rate hikes.
Speaking at an event hosted by the Rotary Club of Atlanta, he specified that persistent services sector inflation has become more problematic than goods inflation, contrary to the trend seen in recent years. Bostic also warned against declaring a win against elevated price growth, adding that he believes the economy can handle the ongoing monetary policy tightening.
He also pointed out that he does not expect a quick increase in the unemployment rate, that the United States economy is still robust and that the baseline scenario for 2023 is avoiding recession while achieving GDP growth of 1%.
