Atlanta Fed's Bostic: Inflation is on Track to 2% Target

The Atlanta Federal Reserve President Raphael Bostic said inflation is on track towards a 2% goal, but the Fed would have to remain "diligent and short run attentive" throughout the year, Bloomberg reported.

Speaking to the Atlanta Rotary Club, Bostic said he was not ready to declare victory quite yet, and policy would have to remain restrictive through the end of the year, according to the Benzinga newswire. He saw two 0.25 reductions in the target interest rate over that time, but with inflation still above target and employment slowing, they would have to remain cautious.

According to Benzinga, he said Goods inflation was back to pre-pandemic, but Services inflation was stubbornly high. He pointed to recent unemployment numbers, "far less" than what would be expected after inflation drops, and that the Fed is in a "very strong position."