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Atlanta Fed President Bostic expects job losses but says 2% inflation is very likely to be achieved without wrecking economy

Rafael W. Bostic, President and Chief Executive Officer of the Federal Reserve Bank of Atlanta, speaks at the European Financial Forum event in Dublin, Ireland, February 13, 2019.

Cloda Kilcoin | Reuters

Atlanta Federal Reserve Bank President Rafael Bostic appeared cautiously on CBS’s “Face the Nation” Sunday morning about his continued commitment to the 2% inflation target and the path to get there. presented an optimistic outlook.

national central bank We raised our target federal funds rate by 75 basis points to between 3 and 3 1/4 on Wednesday.Bostic believes the Federal Reserve can hit its 2% inflation target without seriously damaging the economy.

“I think the Federal Reserve will do everything it can to avoid deep, deep pain,” Bostic told “Face the Nation.”

T.His latest report put inflation at 8.3%. throughout the past year. The Federal Reserve aims to keep demand in the economy down so that prices remain stable. Some fear the draconian policies will cause further economic turmoil.

Bostic recognizes that jobs will likely be lost as a result of the Federal Reserve’s actions. However, compared to previous Fed tightening, Bostic believes that “if jobs are lost, they are very likely to be smaller than we have seen in other circumstances.”

Bostic sees the economy as having “positive momentum” despite two consecutive quarters of negative GDP growth.

“We’re seeing a huge increase in jobs” in Atlanta, the bank’s hometown, Bostic said. “We’re still creating a lot of jobs every month. I really think we have the ability to do that,” he said. “What I expect is that inflation will start to get more under control as we move forward.”

https://www.cnbc.com/2022/09/25/atlanta-fed-president-bostic-expects-job-losses-but-says-theres-a-really-good-chance-to-get-to-2percent-inflation-without-killing-the-economy.html Atlanta Fed President Bostic expects job losses but says 2% inflation is very likely to be achieved without wrecking economy

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