• Atlanta Fed's Bostic says U.S. central bank may not need to raise interest rates as many as three times in 2018 given weak inflation

Market news

9 January 2018

Atlanta Fed's Bostic says U.S. central bank may not need to raise interest rates as many as three times in 2018 given weak inflation

  • Anticipates 'modest' impact of tax overhaul on growth, with few businesses in recent survey saying they expect to expand investment or hiring as a result

  • Concerned public may lose faith in commitment to 2 percent inflation goal, sees it as possible argument for being more patient with future rate increases

  • Says lack of wage and price pressures remains "puzzling" in light of low unemployment

  • Current Federal Funds rate of between 1.25 percent and 1.50 percent could already be "approaching" a neutral rate that could be "close to" 2 percent

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