Fed's Bostic says central bank should not move rates 'too dramatically'

Atlanta Federal Reserve President Raphael Bostic on Friday said moving interest rates “too dramatically” could undermine the positive trends, which are still seen in the economy.

The drastic rate hikes could also add to the already large amount of uncertainty, he told at the Tampa Bay Business Journal forum, Reuters reported.

Bostic did not say explicitly whether he supported another 75 basis point increase at the next Fed meeting.

However, he said the central bank wants policy tightening to be “orderly...Moving too dramatically can undermine a lot of those things that are working well.”

Last Friday, Bostic said he “fully” supports another three-quarter of a percentage point interest rate hike at the next policy meeting.

Following the release of inflation data showing the consumer prices index (CPI) jumped 9.1% annually as of June, Bostic said a 100 basis point move might need to be considered at the Fed meeting later this month.

Picture Credit: Bloomberg

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