WASHINGTON (Reuters) – Atlanta Federal Reserve Bank President Rafael Bostic said on Sunday that he remains confident the central bank can control inflation without causing massive job losses given the economy’s continued momentum.
“If you look back in history … Bostic said on CBS’ “Face the Nation” that if we have unemployment, there’s a good chance it’s going to be a slower economy than it’s been in the past Be small.
“Inflation is high. It’s too high. We need to do everything we can to get it down,” Bostic said of the Fed’s plan to continue raising interest rates sharply, which means slowing the economy, bringing demand for goods and services more in line with supply, and reducing Four-year high inflation.
How deep and prolonged a slowdown is needed—and job losses that might be needed—remains a matter of debate, with Fed officials continuing to argue that companies do not Highly likely to lay off workers who have struggled to hire during the COVID-19 pandemic.
Bostic said continued strong job growth, “there’s a lot of positive momentum… … the economy has some ability to absorb our actions and slow down in a relatively orderly fashion. “
Bostic also said, “We need to slow down. …we will do everything we can at the Fed to avoid deep pain.
Bostic speaks after a week of turmoil in global financial markets.
The Federal Reserve on Wednesday approved a third straight quarterly rate hike and released an indicator of interest rates The forecast was higher than investors expected and stayed there longer.
The news sparked a sharp sell-off in stocks as many other central banks took similar steps, warning that with With so many monetary officials tightening at the same time, the risk of a global recession is emerging. Rising.
Other cracks appear.
Japan, its import prices and local Inflation hit by rising dollar, first intervention in nearly 25 years Sterling fell around 3.5% against the dollar to its lowest level since 1985.
Federal Reserve Chairman Jerome Powell says central bank will continue to monitor U.S. inflation despite global concerns , and would need to see a convincing decline in the rate of price increases “over the next few months” to change its outlook.